Chemtrade Logistics to call remaining 10% convertibles

By Angela McDaniels

Seattle, Jan. 4 - Chemtrade Logistics Income Fund plans to redeem its C$16.4 million outstanding convertible subordinated debentures due Dec. 31, 2007 at par plus accrued interest, according to a fund news release.

The debentures became callable on Dec. 31.

The company said it will use borrowings under its senior credit facilities to fund the redemption.

The debentures carry a coupon of 10%, compared with the roughly 6% interest rate on the fund's credit facilities. The redemption therefore reduces the fund's annual interest costs by about C$0.6 million, according to the release.

Chemtrade is a Toronto-based trust that owns Chemtrade Logistics Inc., which provides industrial chemicals and related services.

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