CPKC lines up C$1.8 billion bond issue to refinance debt

Canadian Pacific Kansas City ($CP)’s railway subsidiary is issuing C$1.8 billion of notes across four maturities, with the listed parent guaranteeing the debt. The package comprises C$500 million at 4.20% due 2030, C$550 million at 4.60% due 2033, C$300 million at 4.90% due 2037 and C$450 million at 5.40% due 2056. Completion is expected on October 6, subject to customary conditions.

The proceeds are intended primarily to refinance Canadian Pacific Railway’s outstanding borrowings, with general corporate purposes also permitted. Spreading the issue across short, medium and long maturities would diversify the debt schedule rather than represent new operating revenue. Until deployed, funds may be held in investment-grade short-term securities, money-market funds or bank deposits. The announcement describes an offering, not a completed financing.

Sources:

• CPKC release via PR Newswire