Canadian Pacific Railway’s $8.5 Billion Public Debt Offerings

Bennett Jones acted for Canadian Pacific Railway Limited (CP) on its concurrent debt offerings in Canada and the United States. Davis Polk advised the joint book-running managers and representatives of the underwriters. Osler, Hoskin & Harcourt LLP acted as Canadian counsel to the underwriters for both the Canadian and US offerings.

Canadian Pacific Railway Company, wholly-owned subsidiary, Canadian Pacific Railway Limited, will issue 262 million new shares and fund the cash portion via a combination of available cash and roughly $8.5 billion in new debt in Canada and the US.

The Notes will be guaranteed by CP. 

The net proceeds from the offerings will be used to indirectly fund CP’s acquisition of Kansas City Southern (KCS). 

The offering in Canada is expected to close on November 24, 2021, and the offering in the United States is expected to close on December 2, 2021.

The joint active bookrunners of the U.S. offering are BMO Capital Markets Corp. and Goldman Sachs & Co. LLC., together with a syndicate that includes ATB Capital Markets Inc., Barclays Capital Inc., CIBC World Markets Corp., Desjardins Securities Inc., HSBC Securities (USA) Inc., MUFG Securities Americas Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC.

The Bennett Jones’ team was led by Harinder Basra (Picture) (corporate/securities) and included Brent Kraus, Jeff Kerbel, Eric Chernin, Jason Wang and Annie Tonken (corporate/securities), Anu Nijhawan (tax) and Karen Dawson (banking). 

The Davis Polk capital markets team included partners John G. Crowley and Derek Dostal and counsel Jennifer Ying Lan. Partner William A. Curran and associate Justin Corvino provided tax advice. Counsel David A. Zilberberg and associate Cristina Harshman provided environmental advice. 

The Osler team was led by Daniel Kolibar and consisted of Justin Sherman, Kelsey Armstrong, Carson Wetter, Lindsay Hofer, Bhavish Beejan (Corporate), Dana Saric (Financial Services) and David Davachi (Tax).

Involved fees earner: Harinder Basra – Bennett Jones; Eric Chernin – Bennett Jones; Karen Dawson – Bennett Jones; Jeffrey Kerbel – Bennett Jones; Brent Kraus – Bennett Jones; Anu Nijhawan – Bennett Jones; Annie Tonken – Bennett Jones; Jason Wang – Bennett Jones; Justin Corvino – Davis Polk & Wardwell; John Crowley – Davis Polk & Wardwell; William Curran – Davis Polk & Wardwell; Derek Dostal – Davis Polk & Wardwell; Cristina Harshman – Davis Polk & Wardwell; Jennifer Ying Lan – Davis Polk & Wardwell; David Zilberberg – Davis Polk & Wardwell; Kelsey Armstrong – Osler Hoskin & Harcourt; Bhavish Beejan – Osler Hoskin & Harcourt; David Davachi – Osler Hoskin & Harcourt; Lindsay Hofer – Osler Hoskin & Harcourt; Daniel Kolibar – Osler Hoskin & Harcourt; Dana Saric – Osler Hoskin & Harcourt; Justin Sherman – Osler Hoskin & Harcourt; Carson Wetter – Osler Hoskin & Harcourt;

Law Firms: Bennett Jones; Davis Polk & Wardwell; Osler Hoskin & Harcourt;

Clients: ATB Capital Markets Inc; Barclays Capital ; BMO Capital Markets; Canadian Pacific Railway Ltd; CIBC World Markets; Desjardins Securities Inc.; Goldman Sachs & Co.; HSBC Securities (USA) Inc.; MUFG Securities Americas Inc. ; Scotia Capital Inc.; SMBC Nikko Securities America; Wells Fargo Securities;

Sonia Carcano

Author: Sonia Carcano