Chemtrade Logistics acquires Clariant's North American sodium hydrosulphite operations

Date Closed: 12/30/2002

Value: US$62 million

On December 20, 2002, Toronto-based Chemtrade Logistics, Inc., completed an offering of 3.04 million subscription receipts at $13.50 per subscription receipt and $41 million principal amount of convertible extendible subordinated debentures for gross proceeds of approximately $82 million. The offering was led by CIBC World Markets Inc., with an underwriting syndicate that included Scotia Capital Inc., RBC Dominion Securities Inc. and First Associates Investments Inc. The proceeds of the offering, combined with a $24 million increase in Chemtrade's term credit facility, were used to fund the US$62 million acquisition of the North American sodium hydrosulphite operations of Clariant Corporation, which closed on December 30, 2002.

In connection with the increase in the term credit facility, Chemtrade was represented in Canada by Frank Callaghan and Jonathan Dyck of BLG.