07:22 AM EDT, 08/22/2024 (MT Newswires) -- Chemtrade Logistics Income Fund (CHE-UN.TO) warned a work stoppage at Canadian Pacific Kansas City ( CP ) and Canadian National Railway ( CNI ) , could have a material negative impact on the company. It is not possible to reliably estimate the impact at this time as that will depend on the duration of the stoppage, Chemtrade said.

The company noted that ahead of the work stoppage, which began overnight, the railways had halted shipments of certain chemicals, such as liquid chlorine.

Separately, Chemtrade said its subsidiary has entered into an agreement to sell $250 million of senior unsecured notes due 2029 at $1,000 per $1,000 principal amount of notes, with an annual interest rate of 6.375%. The notes will be guaranteed by the Fund and certain of its subsidiaries. The offering is expected to close by August 28.

Proceeds will be used to reduce indebtedness and for general corporate purposes.