8-KMaterial AgreementsExhibits & Filings

CANADIAN PACIFIC KANSAS CITY LTD/CN 8-K Report, Material Agreement (Jun 27, 2017)

Filed June 27, 2017For Securities:CP

Summary

Canadian Pacific Kansas City Ltd./CN (CP) filed an 8-K on June 26, 2017, detailing a material definitive agreement. Specifically, on June 23, 2017, Canadian Pacific Railway Company (CPRC), a subsidiary, and the Registrant entered into a fourth amending agreement to their existing credit agreement dated September 26, 2014. This amendment is significant for investors as it directly impacts the company's debt maturity profile.

Key Highlights

  • 1Entry into a Material Definitive Agreement: CP's subsidiary and the parent company entered into a fourth amending agreement to their credit facility.
  • 2Extension of Maturity Dates: The amendments primarily extend key maturity dates of the credit agreement.
  • 35 Year Maturity Date Extended: The 5 Year Maturity Date was pushed back from June 28, 2021, to June 28, 2022.
  • 4Term Out Date Extended: The Term Out Date was extended from June 28, 2017, to June 27, 2018.
  • 5Impact on Debt Structure: These extensions provide the company with greater financial flexibility and a longer runway for its debt obligations.
  • 6Credit Agreement Details: The agreement involves CPRC as borrower, the Registrant as covenantor, Royal Bank of Canada as administrative agent, and various lenders.
  • 7Exhibit Filed: The full text of the Fourth Amending Agreement is filed as an exhibit for detailed review.

Frequently Asked Questions

The primary purpose of the Fourth Amending Agreement is to extend certain maturity dates within CP's existing credit agreement, providing the company with more time to manage its debt obligations.

Extending the maturity dates, particularly the 5 Year Maturity Date and the Term Out Date, offers Canadian Pacific greater financial flexibility. It reduces near-term refinancing pressure and allows the company to better align its debt repayment schedule with its operational and strategic plans.

The key parties involved are Canadian Pacific Railway Company (CPRC) as the borrower, Canadian Pacific Railway Limited (the Registrant) as the covenantor, Royal Bank of Canada as the administrative agent, and the various lenders who are party to the agreement.

The 5 Year Maturity Date was extended from June 28, 2021, to June 28, 2022. The Term Out Date was extended from June 28, 2017, to June 27, 2018.