Canadian Pacific Kansas City launches C$1.8 billion debt offering
Canadian Pacific Kansas City Limited is moving to raise C$1.8 billion through a multi-tranche debt offering by its subsidiary, Canadian Pacific Railway Company. The capital raise, expected to close October 6, aims to refinance existing corporate debt while providing a liquidity cushion for general operations.
The offering consists of four distinct tranches of notes with varying maturity dates and interest rates: C$500 million at 4.20% due in 2030, C$550 million at 4.60% due in 2033, C$300 million at 4.90% due in 2037, and C$450 million at 5.40% due in 2056. The notes are fully guaranteed by the parent company, CPKC.
CIBC World Markets, BMO Nesbitt Burns, RBC Capital Markets, and Scotia Capital are acting as joint lead agents and active bookrunners for the transaction. The securities are being issued under a base shelf prospectus filed in Canada. The company intends to hold any proceeds not immediately used for debt refinancing in short-term, investment-grade securities, money market funds, or bank deposits until needed.
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