CHEMTRADE LOGISTICS INCOME FUND ANNOUNCES RESULTS OF ITS SUBSTANTIAL ISSUER BIDS FOR THE 6.25% CONVERTIBLE UNSECURED SUBORDINATED DEBENTURES DUE AUGUST 31, 2027 AND 7.00% CONVERTIBLE UNSECURED SUBORDINATED DEBENTURES DUE JUNE 30, 2028

Executive Summary

• Chemtrade Logistics Income Fund completed its issuer‑bid programs for the 6.25% convertible debentures due 2027 and the 7.00% convertible debentures due 2028, reducing outstanding convertible debt by roughly 90%.
• The Fund purchased $85.628 M of 2027 debentures at $1,340 per $1,000 principal (plus accrued interest) and will redeem the remaining $4.874 M at par plus interest.
• For the 2028 series, the Fund took up $82.458 M: $8.541 M via a cash election ($1,200 per $1,000 principal) and $73.917 M via a debenture exchange for new 7.00% unsecured subordinated debentures (plus $200 cash per $1,000). New debentures are slated to begin trading on the TSX around Nov 6, 2025.

Key Details

• 2027 Offer Take‑Up
• Aggregate principal tendered: $85,628,000 (≈94.61% of outstanding 2027 debentures).
• Purchase price: $1,340 per $1,000 principal, plus accrued/unpaid interest up to Nov 4, 2025.
• Total consideration paid: $115,694,571.37.

• Remaining 2027 debentures after redemption: $4,874,000 (to be redeemed at par + accrued interest; total redemption price $4,928,248.29, ≈$1,011.13 per $1,000).

• 2028 Offer Take‑Up

• Aggregate principal tendered: $82,458,000 (≈74.96% of outstanding 2028 debentures).
• Cash election: $8,541,000 at $1,200 cash per $1,000 principal, total cash consideration $10,457,226 plus accrued interest.
• Debenture election: $73,917,000 exchanged for $73,917,000 of new 7.00% unsecured subordinated debentures and $16,583,734.60 cash (effectively $200 cash per $1,000 principal) plus accrued interest.

• New debentures to be listed on TSX under ticker CHE.DB.I around Nov 6, 2025.

• Overall Impact

• Convertible debt outstanding reduced by ~90%, improving capital structure and lowering potential equity dilution.
• Combined with senior unsecured notes issued in 2024 and earlier 2025, the actions further strengthen the Fund’s balance sheet and reduce cost of capital.

Notable Quotes

“We are pleased with the outcome of the SIBs and the significant reduction in outstanding convertible debentures… this initiative reflects the continued strengthening and maturing of Chemtrade's balance sheet, leading to a reduction in our cost of capital.” – Rohit Bhardwaj, Chief Financial Officer

Materiality Assessment: Material – Positive (substantial debt reduction and issuance of new senior debentures materially improve the Fund’s financial position).