Chemtrade Logistics Income Fund Announces TSX Approval of Normal Course Issuer Bid

Chemtrade Logistics Income Fund has announced the TSX's acceptance of its normal course issuer bid to purchase up to 5% of its outstanding shares. The company is a diversified business providing industrial chemicals and services to North America and worldwide, and operates in the Sulphur and Water Chemicals and Electrochemicals segments.

Chemtrade Logistics Income Fund (TSX: CHE.UN) has received approval from the Toronto Stock Exchange (TSX) to commence a normal course issuer bid (NCIB) to purchase up to 5% of its outstanding units. This move aligns with the company's ongoing capital allocation strategy, aiming to balance the return of capital with investment in growth opportunities while maintaining a prudent balance sheet.

Under the NCIB, Chemtrade is authorized to purchase up to 11,231,131 units, representing approximately 10% of its public float. The NCIB commences on August 19, 2025, and will terminate on August 18, 2026, or an earlier date if Chemtrade completes the purchases. Daily purchases on the TSX will be limited to a maximum of 53,231 units, representing 25% of the average daily trading volume for the six months ended July 31, 2025.

The price Chemtrade will pay for any units acquired will be the market price on the TSX and/or alternative Canadian trading systems at the time of acquisition. The company may determine that buying back units is an appropriate use of funds, given that the units trade in a price range that does not adequately reflect their value. This purchase is expected to benefit remaining unitholders.

Chemtrade has also entered into an automatic purchase plan with its designated broker, allowing for purchases during certain pre-determined blackout periods. Outside these periods, units will be purchased in accordance with management's discretion, subject to applicable law. The plan has been pre-cleared by the TSX.

The NCIB is consistent with Chemtrade's strategy to return capital to unitholders. In the twelve months ended June 30, 2025, the company returned approximately $195.5 million of capital in the form of monthly distributions and unit buybacks.

Chemtrade's recent second-quarter results highlight the company's strong performance. Revenue increased by 10.8% year-over-year to $496.7 million, while Adjusted EBITDA rose by 19.9% to $138.0 million. Despite a decrease in net earnings due to non-cash impairments, the company's distributable cash after maintenance capital expenditures increased by 49.6% year-over-year to $71.5 million. The company also maintains a strong balance sheet with a net debt to LTM Adjusted EBITDA ratio of 2.0x.

Chemtrade's strategic framework, Chemtrade Vision 2030, targets strong total unitholder returns, supported by 5-10% annual growth in mid-cycle Adjusted EBITDA and Distributable cash after maintenance capital expenditures. The company aims to grow its mid-cycle annual Adjusted EBITDA to between $550 million and $600 million by 2030.

References:
[1] https://www.newswire.ca/news-releases/chemtrade-logistics-income-fund-announces-tsx-acceptance-of-normal-course-issuer-bid-897179967.html
[2] https://finance.yahoo.com/news/chemtrade-announces-strong-results-q2-211900431.html