Canadian Pacific Kansas City Limited Stock Price, News & Analysis

Canadian Pacific (TSX: CP) announced the launch of exchange offers for seven series of notes previously issued by Kansas City Southern. The exchange, effective March 20, 2023, allows holders of validly tendered Old Notes to receive CPRC Notes, backed by a guarantee from Canadian Pacific Railway Limited. Key figures include $250 million in 3.125% Senior Notes due 2026 and $500 million in 4.700% Senior Notes due 2048. The exchange offers expire on April 17, 2023. Holders are encouraged to review detailed exchange offer materials that include the Registration Statement filed with the SEC. The CPRC Notes will be unsecured and rank equally with existing obligations.

On March 17, 2023, Canadian Pacific (TSX: CP, NYSE: CP) announced a tentative collective agreement with the Teamsters Canada Rail Conference Maintenance of Way Employees Division, covering around 2,600 engineering services employees in Canada. CP's President and CEO, Keith Creel, acknowledged the collaborative effort in reaching this agreement, highlighting the successful negotiation with multiple unions in recent months, resulting in 16 agreements ratified in 2023 across Canada and the U.S. The specifics of the agreement will remain undisclosed until ratification.

On April 14, 2023, Canadian Pacific (CP) will combine with Kansas City Southern (KCS), forming Canadian Pacific Kansas City (CPKC), the first single-line railway linking the U.S., Canada, and Mexico. This merger is expected to enhance competition in the North American rail industry. Keith Creel will lead CPKC as President and CEO, with a new executive team. The integration aims to improve safety and service while creating over 800 new jobs. The merger is projected to divert 64,000 truckloads to rail, significantly cutting greenhouse gas emissions. CPKC plans to invest US$275 million in infrastructure over three years.

On March 15, 2023, the U.S. Surface Transportation Board approved the merger of Canadian Pacific (TSX: CP) and Kansas City Southern (KCS), paving the way for the formation of Canadian Pacific Kansas City (CPKC), set to take effect on or after April 14, 2023. This merger marks the first single-line railway linking the U.S., Mexico, and Canada. The merger is expected to enhance competition, create jobs, and improve rail safety, with over 800 new positions anticipated in the U.S. alone. CPKC aims to operate approximately 20,000 miles of rail, addressing supply chain needs and positioning itself strongly against other Class I carriers.

Canadian Pacific (NYSE: CP) announced the ratification of a new five-year collective agreement by the Brotherhood of Locomotive Engineers and Trainmen (BLET), covering approximately 300 employees on its Soo Line subsidiary. The agreement, which includes improved pay and flexibility, reflects CP's commitment to collaborative labor relations. In 2023, CP ratified 16 agreements with various unions across Canada and the U.S. The BLET agreement specifically pertains to locomotive engineers in North Dakota, Minnesota, Wisconsin, Illinois, and Indiana. Forward-looking statements highlight potential risks and uncertainties in CP's operations.

Canadian Pacific (TSX: CP) will have its President and CEO, Keith Creel, speak at the J.P. Morgan Industrials Conference on March 16, 2023, at 8:50 a.m. ET. The event will be accessible via a live audio webcast, with a replay available afterward. Canadian Pacific is a transcontinental railway company operating in Canada and the United States, providing competitive rail services and logistics solutions to North American customers. They aim to enhance global access to key markets.

Canadian Pacific (NYSE: CP) has ratified a new collective agreement with the Brotherhood of Locomotive Engineers and Trainmen, impacting its U.S. Midwest locomotive engineers and trainmen. The agreement, effective upon the completion of the CP-Kansas City Southern (KCS) merger, offers enhanced pay and scheduled time off. This development is significant as it aims to improve employee satisfaction and operational flexibility, positioning CP to better compete in the North American rail market. The proposed merger remains pending regulatory approval from the U.S. Surface Transportation Board, with a decision expected in Q1 2023.

On March 4, 2023, Canadian Pacific (TSX: CP) announced that the U.S. Surface Transportation Board has approved Ronald L. Batory as the Voting Trustee of the CP-Kansas City Southern (KCS) Voting Trust, following the death of David Starling. Batory, with over 45 years in the railroad industry, will serve until CP gains control of KCS. The current Voting Trust keeps CP and KCS as separate entities. This leadership change comes amid ongoing strategic efforts related to the CP-KCS transaction, which aims to enhance operational synergies and growth prospects in the North American rail sector.

On March 1, 2023, Canadian Pacific (TSX: CP) announced the proposal to appoint Ronald L. Batory as the Trustee of the CP-KCS Voting Trust, following the passing of David Starling. Batory, with over 45 years in the railroad industry, including his role as the former FRA Administrator, is set to assume this role immediately upon U.S. Surface Transportation Board approval. The CP-KCS Voting Trust will remain in place until CP gains control of KCS. Batory's extensive experience may facilitate smoother operations and oversight during this transitional period.