#Canada #Calgary #Canadian Pacific #Financial Strategies #Debt Offering

CPKC's Strategic $1.2 Billion Debt Offering

On March 4, 2026, Canadian Pacific Kansas City Limited (CPKC) unveiled a substantial debt offering totaling $1.2 billion, with plans for its wholly-owned subsidiary, Canadian Pacific Railway Company, to issue two significant sets of notes: $600 million in 4.000% notes due 2029 and $600 million in 5.500% notes due 2056. This move is crucial for CPKC as it navigates its financial landscape while providing robust rail services across North America.

Purpose of the Offering

The primary objective of this debt issuance is to refinance existing obligations and support general corporate purposes. The funds generated will not only enhance CPKC’s financial position but may also be invested temporarily in short-term, investment-grade securities or bank deposits until they are allocated for specified uses. This strategic financial maneuver aims to bolster the company’s operational capabilities and ensure sustained growth amid fluctuating market conditions.

Anticipated Closing and Financial Governance

The offering is set to close on March 6, 2026, pending usual closing conditions. The underwriting team for this offering comprises Goldman Sachs & Co. LLC, Barclays Capital Inc., Citigroup Global Markets Inc., and SMBC Nikko Securities America, Inc., supported by a syndicate of other notable financial institutions including BMO Capital Markets Corp., CIBC World Markets Corp., and RBC Capital Markets, LLC among others.

This extensive network of underwriters showcases CPKC’s strong backing and reflects confidence in its financial strategy and corporate governance.

Regulatory Framework and Investor Considerations

The debt offering is conducted under an effective shelf registration statement previously filed with the Securities and Exchange Commission (SEC). Investors seeking details can access related documentation through the SEC's website. However, it's essential to note that this announcement does not constitute an offer to sell or solicit any securities, especially in jurisdictions where such actions would contravene local laws.

Forward-Looking Statements

The announcement includes forward-looking statements and cautionary considerations regarding the anticipated use of proceeds and the broader economic landscape. Given the economic uncertainties, stakeholders are advised that actual results may diverge from expectations, driven by factors such as market conditions, regulatory changes, and operational dynamics. CPKC emphasizes the inherent risks associated with these statements and advises thorough due diligence by investors.

About Canadian Pacific Kansas City Limited

Canadian Pacific Kansas City Limited, headquartered in Calgary, Alberta, Canada, stands as a pioneering single-line transnational railway that connects Canada, the U.S., and Mexico. With an extensive network of approximately 20,000 route miles and a dedicated workforce of 20,000 railroaders, CPKC is recognized for delivering unparalleled rail services across North America. The integration of comprehensive logistics solutions further enhances its service offerings, establishing CPKC as a leader in the rail transportation sector.

As it embarks on this significant debt offering, CPKC prepares to not only meet its financial commitments but also to strategically position itself for future growth, adapting to market demands and operational challenges in the transcontinental railway industry. CPKC’s commitment to excellence and adapting through innovation continues to reflect its tenacious spirit as it navigates the complexities of modern transportation needs.