Canadian Pacific Sells $8.45 Billion Bonds for KC Southern Deal
- Railroad operator is acquiring competitor for $27 billion
- 30-year bond will yield 117 basis points above Treasuries
Canadian Pacific Railway Ltd. is tapping the U.S. investment-grade bond market to help fund its acquisition of Kansas City Southern.
Photographer: Alex Ramadan/BloombergThis article is for subscribers only.
Canadian Pacific Railway Ltd. raised $8.45 billion by selling investment-grade bonds in U.S. and Canadian dollars to help fund its acquisition of Kansas City Southern.
The Calgary-based railroad operator priced $6.7 billion of U.S. dollar bonds in five parts, according to a person with knowledge of the matter. Separately, the company also sold C$2.2 billion ($1.74 billion) notes in two parts.