CPKC announces US $1.2 billion debt offering

Rhea-AI Summary

Canadian Pacific Kansas City (TSX: CP; NYSE: CP) announced a US$1.2 billion debt offering via its subsidiary Canadian Pacific Railway Company: US$600 million 4.000% notes due 2029 and US$600 million 5.500% notes due 2056, guaranteed by CPKC.

The offering is expected to close on March 6, 2026; net proceeds will be used primarily for refinancing outstanding indebtedness and for general corporate purposes.

Positive

• US$1.2B financing secured via subsidiary notes
• Guaranteed by CPKC, supporting credit profile
• Long-dated 2056 notes extend maturity profile
• Net proceeds earmarked primarily for debt refinancing

Negative

• Fixed interest obligations of 4.000% (2029) and 5.500% (2056)
• Adds US$1.2B of guaranteed debt to consolidated obligations
• Closing subject to customary conditions, not finalized until March 6, 2026

Key Figures

Total debt offering: US $1.2 billion 4.000% Notes: US $600 million 5.500% Notes: US $600 million +3 more

6 metrics

Total debt offering US $1.2 billion Combined principal amount of new notes

4.000% Notes US $600 million 4.000% Notes due 2029

5.500% Notes US $600 million 5.500% Notes due 2056

Coupon rate (2029 notes) 4.000% Interest rate on Notes due 2029

Coupon rate (2056 notes) 5.500% Interest rate on Notes due 2056

Expected closing date March 6, 2026 Scheduled closing of the debt offering

Market Reality Check

Price: $86.79 Vol: Volume 2,358,984 is below...

normal vol

$86.79 Last Close

Volume Volume 2,358,984 is below the 20-day average of 3,238,209, suggesting a relatively subdued reaction to the offering. normal

Technical Shares at $86.79 are trading above the 200-day MA of $76.55, near the -2.94% area versus the 52-week high.

Peers on Argus

CP fell 1.11% while close peers were mixed: CNI -0.46%, CSX -0.33%, WAB -0.41%, ...

CP fell 1.11% while close peers were mixed: CNI -0.46%, CSX -0.33%, WAB -0.41%, but NSC and UNP were modestly positive. This points to a CP-specific reaction to the debt offering rather than a broad rail move.

Historical Context

5 past events · Latest: Mar 03 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Mar 03	Branding initiative	Neutral	-1.8%	Introduction of America250 commemorative locomotive and U.S. network emphasis.
Mar 03	Operational records	Positive	-1.8%	New February grain movement records and strong crop-year volume commentary.
Feb 26	Annual report filing	Neutral	+1.6%	Completion of 2025 Form 10-K filing and availability of audited statements.
Feb 03	Investor conferences	Neutral	+2.1%	CEO scheduled to present at two major February investor conferences.
Feb 02	Operational records	Positive	+2.1%	January Canadian grain shipment records and strong crop-year shipment totals.

Pattern Detected

Recent news events, including operational records and corporate updates, generally saw price moves that aligned with the tone of the announcements, with one notable divergence where strong grain metrics coincided with a decline.

Recent Company History

Over the last few months, CPKC has highlighted operational records and routine corporate updates. In Jan–Feb 2026 it reported new monthly grain tonnage and carload records in January and February, and filed its 2025 Form 10-K on Feb 26. There were also announcements on CEO conference appearances and a commemorative locomotive tied to America250. Against this backdrop of solid operations and branding initiatives, today’s US $1.2 billion debt offering fits into an ongoing pattern of active balance sheet management and capital markets usage.

Market Pulse Summary

This announcement details a US $1.2 billion debt financing split between 4.000% notes due 2029 and 5...

Analysis

This announcement details a US $1.2 billion debt financing split between 4.000% notes due 2029 and 5.500% notes due 2056, primarily to refinance existing indebtedness. Investors may focus on how the new terms compare with maturing obligations and what this implies for interest expense and maturity profiles. Given CPKC’s recent operational records and ongoing capital markets activity, upcoming filings and earnings will be important to track leverage, coverage, and overall balance sheet evolution.

Key Terms

notes, short term investment grade securities, prospectus supplement, shelf registration statement

4 terms

notes financial

"issuing US $600 million of 4.000% Notes due 2029 and US $600 million..."

Notes are written promises issued by a company or government to borrow money for a defined period, typically paying interest and returning the principal at maturity; they are essentially formal IOUs used to raise short- to medium-term funding. For investors, notes matter because they provide a predictable stream of income and carry credit and timing risk—like lending cash to someone with a set payback date—so their yield, repayment terms and issuer strength determine potential return and safety.

short term investment grade securities financial

"may be invested in short term investment grade securities or bank deposits."

Short term investment grade securities are debt instruments that mature within a year and carry high-quality credit ratings indicating low risk of default. They act like a safer, interest-earning place to park cash—similar to a short-term savings account for large investors—offering liquidity and capital preservation but lower returns than riskier or longer-term assets. Investors care because these securities balance safety, quick access to funds, and modest income when managing cash or reducing portfolio volatility.

prospectus supplement regulatory

"request copies of the prospectus supplement and the accompanying prospectus for the offering"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

shelf registration statement regulatory

"The offering is being made pursuant to an effective shelf registration statement"

A shelf registration statement is a document a company files with regulators that allows it to sell shares or bonds quickly when it’s a good time to raise money. It’s like having a pre-approved plan ready so the company can act fast without going through lengthy paperwork each time they want to sell, making fundraising more flexible.

AI-generated analysis. Not financial advice.

CALGARY, AB, March 4, 2026 /PRNewswire/ - Canadian Pacific Kansas City Limited (TSX: CP) (NYSE: CP) ("CPKC") announced that its wholly-owned subsidiary, Canadian Pacific Railway Company, is issuing US $600 million of 4.000% Notes due 2029 and US $600 million of 5.500% Notes due 2056, which will be guaranteed by CPKC.

The offering is expected to close on March 6, 2026, subject to the satisfaction of customary closing conditions.

The net proceeds from the offering will be used primarily for the refinancing of outstanding indebtedness and for general corporate purposes. Until utilized for such purposes, the net proceeds may be invested in short term investment grade securities or bank deposits.

The joint active bookrunners for the offering are Goldman Sachs & Co. LLC, Barclays Capital Inc., Citigroup Global Markets Inc. and SMBC Nikko Securities America, Inc., together with a syndicate that includes BMO Capital Markets Corp., CIBC World Markets Corp., RBC Capital Markets, LLC, Scotia Capital (USA) Inc., BofA Securities, Inc., Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, ATB Capital Markets Corp., Desjardins Securities Inc. and U.S. Bancorp Investments, Inc.

The offering is being made pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission (the "SEC"). Copies of these documents may be obtained without charge from the SEC at www.sec.gov. Alternatively, you may request copies of the prospectus supplement and the accompanying prospectus for the offering by contacting Goldman Sachs & Co. LLC toll-free at 1-866-471-2526, Barclays Capital Inc. toll-free at 1-888-603-5847, Citigroup Global Markets Inc. toll-free at 1-800-831-9146 and SMBC Nikko Securities America, Inc. toll-free at 1-888-868-6856.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor will there be any sale of these securities, in Canada or in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Under the terms of the offering, the underwriters have agreed not to offer or sell the securities sold in the offering in Canada or to any resident of Canada.

Forward looking information
This news release contains certain forward-looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information includes, but is not limited to, statements concerning expectations, beliefs, plans, goals, objectives, assumptions and statements about possible future events, conditions, and results of operations or performance. Forward-looking information may contain statements with words or headings such as "financial expectations", "key assumptions", "anticipate", "believe", "expect", "plan", "will", "outlook", "should" or similar words suggesting future outcomes. This news release contains forward-looking information relating, but not limited to, the intended use of proceeds from the offering, including the reduction and refinancing of outstanding indebtedness and the timing and completion of the proposed offering.

The forward-looking information that may be in this news release is based on current expectations, estimates, projections and assumptions, having regard to CPKC's experience and its perception of historical trends, and includes, but is not limited to, expectations, estimates, projections and assumptions relating to: the anticipated closing of the offering; changes in business strategies; North American and global economic growth and conditions; commodity demand growth; sustainable industrial and agricultural production; commodity prices and interest rates; foreign exchange rates; core adjusted effective tax rates; performance of our assets and equipment; sufficiency of our budgeted capital expenditures in carrying out our business plan; geopolitical conditions; applicable laws, regulations and government policies, including, without limitation, those relating to regulation of rates, tariffs, import/export, trade, taxes, wages, labour and immigration; the availability and cost of labour, services and infrastructure; labour disruptions; the satisfaction by third parties of their obligations to CPKC; and carbon markets, evolving sustainability strategies, and scientific or technological developments. Although CPKC believes the expectations, estimates, projections and assumptions reflected in the forward-looking information presented herein are reasonable as of the date hereof, there can be no assurance that they will prove to be correct. Current conditions, economic and otherwise, render assumptions, although reasonable when made, subject to greater uncertainty.

Undue reliance should not be placed on forward-looking information as actual results may differ materially from those expressed or implied by forward-looking information. By its nature, CPKC's forward-looking information involves inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking information, including, but not limited to, the following factors: an inability to complete the offering; the risk that, notwithstanding CPKC's current intentions regarding the use of the net proceeds of the offering, there may be circumstances where a reallocation of the net proceeds may be necessary; changes in business strategies and strategic opportunities; general Canadian, U.S., Mexican and global social, economic, political, credit and business conditions; risks associated with agricultural production such as weather conditions and insect populations; the availability and price of energy commodities; the effects of competition and pricing pressures, including competition from other rail carriers, trucking companies and maritime shippers in Canada, the U.S. and Mexico; North American and global economic growth and conditions; industry capacity; shifts in market demand; changes in commodity prices and commodity demand; uncertainty surrounding timing and volumes of commodities being shipped by CPKC; inflation; geopolitical instability; changes in laws, regulations and government policies, including, without limitation, those relating to regulation of rates, tariffs, import/export, trade, wages, labour and immigration; changes in taxes and tax rates; potential increases in maintenance and operating costs; changes in fuel prices; disruption of fuel supplies; uncertainties of investigations, proceedings or other types of claims and litigation; compliance with environmental regulations; labour disputes; changes in labour costs and labour difficulties; risks and liabilities arising from derailments; transportation of dangerous goods; timing of completion of capital and maintenance projects; sufficiency of budgeted capital expenditures in carrying out business plans; services and infrastructure; the satisfaction by third parties of their obligations; currency and interest rate fluctuations; exchange rates; effects of changes in market conditions and discount rates on the financial position of pension plans and investments; trade restrictions, including the imposition of any tariffs, or other changes to international trade arrangements; the effects of current and future multinational trade agreements on or other developments affecting the level of trade among Canada, the U.S. and Mexico; climate change and the market and regulatory responses to climate change;  anticipated in-service dates; success of hedging activities; operational performance and reliability; customer, regulatory and other stakeholder approvals and support; regulatory and legislative decisions and actions; the adverse impact of any termination or revocation by the Mexican government of Kansas City Southern de México, S.A. de C.V.'s concession; public opinion; various events that could disrupt operations, including severe weather, such as droughts, floods, avalanches, volcanism and earthquakes, and cybersecurity attacks, as well as security threats and governmental response to them, and technological changes; acts of terrorism, war or other acts of violence or crime or risk of such activities; insurance coverage limitations; material adverse changes in economic and industry conditions; the outbreak of a pandemic or contagious disease and the resulting effects on economic conditions; the demand environment for logistics requirements and energy prices; restrictions imposed by public health authorities or governments; fiscal and monetary policy responses by governments and financial institutions; disruptions to global supply chains; the realization of anticipated benefits and synergies of the CP-KCS transaction and the timing thereof; the satisfaction of the conditions imposed by the U.S. Surface Transportation Board in its March 15, 2023 decision; the successful integration of KCS into CPKC; the focus of management time and attention on the CP-KCS integration and; other disruptions arising from the CP-KCS integration; estimated future dividends; financial strength and flexibility; debt and equity market conditions, including the ability to access capital markets on favourable terms or at all; cost of debt and equity capital; improvement in data collection and measuring systems; industry-driven changes to methodologies; and the ability of the management of CPKC to execute key priorities, including those in connection with the CP-KCS transaction. The foregoing list of factors is not exhaustive. These and other factors are detailed from time to time in reports filed by CPKC with securities regulators in Canada and the United States. Reference should be made to "Item 1A - Risk Factors" and "Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Forward-Looking Statements" in CPKC's annual and interim reports on Form 10-K and 10-Q. Any forward-looking information contained in this news release is made as of the date hereof. Except as required by law, CPKC undertakes no obligation to update publicly or otherwise revise any forward-looking information, or the foregoing assumptions and risks affecting such forward-looking information, whether as a result of new information, future events or otherwise.

About CPKC
With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line transnational railway linking Canada, the United States and México, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf Coast to Lázaro Cárdenas, México. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CPKC is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. CP-IR

View original content to download multimedia:https://www.prnewswire.com/news-releases/cpkc-announces-us-1-2-billion-debt-offering-302704607.html

SOURCE CPKC

FAQ

What did CP announce on March 4, 2026 about a US$1.2 billion debt offering?

CP announced issuance of US$600M 4.000% notes due 2029 and US$600M 5.500% notes due 2056. According to the company, the notes are guaranteed by CPKC and expected to close on March 6, 2026, subject to customary conditions.

How will CP use the proceeds from the US$1.2 billion offering (CP)?

CP said net proceeds will be used primarily to refinance outstanding indebtedness and for general corporate purposes. According to the company, unused proceeds may be invested in short-term investment grade securities or bank deposits temporarily.

When do the CP notes issued March 4, 2026 mature and what are their rates?

The offering consists of US$600M 4.000% notes maturing in 2029 and US$600M 5.500% notes maturing in 2056. According to the company, both series are guaranteed by CPKC.

Is the US$1.2 billion offering by CP guaranteed and who underwrote it?

Yes, the notes are guaranteed by CPKC. According to the company, joint active bookrunners include Goldman Sachs, Barclays, Citigroup and SMBC Nikko, with a broader underwriting syndicate.

When will the CP US$1.2 billion debt offering close and what conditions apply?

The offering is expected to close on March 6, 2026, subject to customary closing conditions. According to the company, closing is not final until those customary conditions are satisfied.