Chemtrade completes $80 million public offering of convertible debentures

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TORONTO, March 24 /CNW/ - Chemtrade Logistics Income Fund (TSX: CHE:UN) ("Chemtrade" or the "Fund") today announced that it has closed its previously announced public offering of $80 million principal amount of 6.0% convertible unsecured subordinated debentures (the "Debentures") due March 31, 2017. The Debentures are convertible, at the option of the holder, into trust units of the Fund at a conversion price of $16.00 per unit. The Debentures were sold to a syndicate of underwriters led by Scotia Capital Inc. and BMO Capital Markets and including TD Securities Inc., on a bought deal basis. In addition, Chemtrade has also granted the underwriters an over-allotment option to purchase up to an additional $12 million aggregate principal amount of Debentures at the same price, exercisable in whole or in part at any time for a period of 30 days following closing.

Chemtrade will use the net proceeds of the offering to repay existing indebtedness under its credit facility and for general trust purposes.

The securities offered have not and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.

Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world. Chemtrade is one of North America's largest suppliers of sulphuric acid, liquid sulphur dioxide and sodium hydrosulphite, and a leading processor of spent acid. Chemtrade is also a leading regional supplier of sulphur, sodium chlorate, phosphorous pentasulphide, and zinc oxide.

This news release contains certain statements which may constitute "forward-looking" statements within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario). The use of any of the words "anticipate", "continue", estimate", "expect", "expected", "intend", "may", "will", "project", "plan", "should", "believe" and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this news release describe the expectations of Chemtrade as of the date of this news release. Our actual results could be materially different from our expectations if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. As a result, we cannot guarantee that any forward-looking statement will materialize. Forward-looking statements do not take into account the effect that transactions or non-recurring items announced or occurring after the statements are made may have on our business. We disclaim any intention or obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.

This news release contains forward-looking statements about the objectives, strategies, financial condition, results of operations and businesses of the Fund, including, but not limited to the Fund's use of net proceeds of the offering.

Further information can be found in the disclosure documents filed by Chemtrade Logistics Income Fund with the securities regulatory authorities, available at www.sedar.com.

%SEDAR: 00016317E

For further information: Mark Davis, President and CEO, Tel: [phone]; Rohit Bhardwaj, Vice President Finance & CFO, Tel: [phone]