#Canada #Calgary #CPKC #Debt Offering #Canadian Pacific Railway

Overview of CPKC's Debt Offering

On June 11, 2025, Canadian Pacific Kansas City Limited (CPKC), listed on both the Toronto Stock Exchange (TSX: CP) and the New York Stock Exchange (NYSE: CP), revealed its plans for a significant C$1.4 billion debt offering. This initiative is aimed at addressing the financial needs of its wholly-owned subsidiary, Canadian Pacific Railway Company (CPRC).

Details of the Offering

The debt offering is structured into three distinct tranches:

• - C$500 million of 4.00% Notes due in 2032
• - C$600 million of 4.40% Notes due in 2036
• - C$300 million of 4.80% Notes due in 2055

These notes will be guaranteed by CPKC, enhancing their attractiveness to investors. The company expects the transaction to close on June 13, 2025, contingent upon the satisfaction of customary closing conditions.

Purpose of the Offering

The primary use of funds from this offering will be to refinance CPRC's existing indebtedness, thereby improving its capital structure and financial flexibility. Additionally, it will support general corporate purposes, which may include financing growth initiatives or investment in infrastructure improvements across its rail network.

The Role of Leading Financial Institutions

Leading the underwriting process are Scotia Capital Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., and RBC Capital Markets. Their role as joint lead agents indicates confidence in the offering and reflects the robust financial strategies deployed by CPKC.

Regulatory Considerations

It is important to note that the securities issued under this offering are not registered under the U.S. Securities Act of 1933 and cannot be offered or sold in the United States without proper registration or an exemption. This exemplifies CPKC's adherence to strict regulatory frameworks as it navigates the complexities of international capital markets.

Accessing the Prospectus

Investors interested in the offering can access the relevant prospectus documents via SEDAR+ or can obtain physical copies through the institutions leading the offering. This transparency ensures that prospective investors have access to all necessary information to make informed decisions.

Forward-Looking Statements

This release contains forward-looking statements that reflect CPKC's expectations regarding future financial performance based on current projections and assumptions. While these expectations are made in good faith, actual results could differ significantly due to various risks, including economic changes and market dynamics.

Conclusion

The C$1.4 billion debt offering by CPKC illustrates the company’s proactive approach to financial management and growth strategies within the North American railway sector. With its strategic focus on refinancing existing debts and supporting corporate initiatives, CPKC is positioned to enhance its operational capabilities and sustain its competitive advantage in the freight transportation market.

For further inquiries and detailed information regarding the offering, individuals can directly contact the joint lead agents mentioned above.