Canadian Pacific Railway Limited (TSX: CP) seems to be looking into augmenting its liquidity. The railway company shared on late Wednesday that it will be issuing notes with an aggregate principal amount of US$6.7 billion in the US and $2.2 billion in Canada.
Through its wholly-owned subsidiary, Canadian Pacific Railway Company, the transcontinental railway will be issuing notes with varying terms.
The announced US notes offering breaks down as:
- US$1.5 billion of 1.350% notes due 2024
- US$1.0 billion of 1.750% notes due 2026
- US$1.4 billion of 2.450% notes due 2031
- US$1.0 billion of 3.000% notes due 2041
- US$1.8 billion of 3.100% notes due 2051
Concurrent with the US offering, the firm is also supplementing its previously announced notes offering in Canada, issuing notes with an aggregate principal amount of $2.2 billion. This includes $1.0 billion of 1.589% notes due 2023 and $1.2 billion of 2.540% notes due 2028.
The company relayed that net proceeds from the offerings are intended to indirectly fund the Kansas City Southern acquisition. The notes offering in Canada is expected to close on November 24, 2021, while the US notes offering on December 2, 2021.
The railway company recently reported its Q3 2021 financials, highlighting a quarterly revenue of $1.94 billion.
Canadian Pacific Railway last traded at $94.23 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.