Funding
Chemtrade Closes Additional $200 Million Notes Offering, Bringing 2032 Notes to $450 Million
By News Desk ·
Key takeaways
- Chemtrade Logistics Inc. closed a $200 million private placement of 5.750% Senior Unsecured Notes due October 1, 2032.
- The closing brings the combined outstanding principal of the 5.750% notes due 2032 to $450 million.
- BMO Capital Markets and National Bank of Canada Capital Markets led the underwriting syndicate for the offering.
Chemtrade Logistics Inc., a subsidiary of Chemtrade Logistics Income Fund, closed a $200 million private placement of 5.750% Senior Unsecured Notes due October 1, 2032, bringing the combined outstanding principal of those notes to $450 million. The fund announced the closing on October 20, 2026, according to TradingView.
Chemtrade's $200 Million Notes Closing
The offering was underwritten by a syndicate led by BMO Capital Markets and National Bank of Canada Capital Markets. The notes were sold in Canada on a private placement basis and to qualified institutional buyers under Rule 144A in the United States. They have not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption.
Chemtrade said it will use the net proceeds to reduce indebtedness and for general corporate purposes. The notes carry a 5.750% rate and mature on October 1, 2032. BMO Capital Markets cut its chemical sector outlook on October 9, 2026, citing Strait of Hormuz disruptions, according to Investing.com.
Chemtrade's Capital Structure Moves
According to akta.pro company records, Chemtrade redeemed all outstanding 7.00% convertible unsecured subordinated debentures due June 30, 2028, in May 2026, removing dilutive instruments from its capital structure. In April 2026, it launched a normal course issuer bid permitting repurchase of up to 5,834,048 units, or 5.22% of capital, through April 2027. The company's funding rounds on record include a $180.6 million post-IPO debt round in September 2025, an $87 million post-IPO debt round in January 2025, a $184 million post-IPO debt round in August 2024, and an $86.5 million post-IPO equity round in August 2022 led by RBC Capital Markets.
| Date | Type | Amount |
|---|---|---|
| 2025-09 | Post-IPO debt | $180.6 million |
| 2025-01 | Post-IPO debt | $87 million |
| 2024-08 | Post-IPO debt | $184 million |
| 2022-08 | Post-IPO equity | $86.5 million |
Chemtrade's Path to the Notes Offering
Chemtrade priced a CAD 200 million reopening of its 5.75% senior unsecured notes due 2032 via private placement on October 13, 2026, with the notes trading at CAD 982.50 per CAD 1,000 principal and yielding 6.104%, according to The future of trading. On October 9, 2026, the fund announced plans to convert to a corporate structure, with unitholders receiving one PubCo common share per unit, according to the Financial Post. The conversion is expected to complete on December 18, 2026, and the annualized dividend rate is expected to remain consistent.
Chemtrade's Next Scheduled Events
Chemtrade Logistics Income Fund will release its third-quarter 2026 results on November 13, 2026, after market close, according to the Financial Post. A conference call to review the results will be webcast live on November 16, 2026 at 10:00 a.m.