CN Announces US$750 Million Debt Offering

• Canadian National Railway Company (CN) announced a US$750 million public debt offering on May 7, 2026.
• The offering consists of two tranches: $300 million in 4.350% notes due 2029 and $450 million in 4.950% notes due 2036.
• Net proceeds are designated for general corporate purposes, specifically including the repayment of commercial paper.
• The offering closes on May 12, 2026, under an effective shelf registration statement dated April 29, 2026.
• Concurrently, CN reported record grain movement in April 2026 (3.2 million metric tonnes), marking the seventh monthly record in eight months.
• CN continues to actively oppose the Union Pacific-Norfolk Southern merger application at the Surface Transportation Board (STB).

• The debt offering is a standard capital management activity consistent with previous financings ($700M USD in Nov 2025, $1B CAD in June 2025).
• It does not represent distress financing; proceeds are for general corporate use and commercial paper repayment.
• Given the company's investment-grade status and strong cash flow from record grain volumes, this is expected market behavior rather than a surprise catalyst.
• The announcement coincided with a price pullback from April highs ($157.36 to $151.34), suggesting the market absorbed the debt issuance without panic but did not view it as value-accretive immediately.
• Regulatory opposition to the UP-NS merger remains a neutral-to-positive long-term factor for CN, protecting its competitive position in the US freight rail market.

• CN operates one of North America's most extensive rail networks, spanning Canada and the United States with nearly 20,000 route miles.
• Flagship Project: The Western Canadian Grain Corridor is a critical asset, handling record volumes of agricultural exports to global markets via Vancouver and Prince Rupert ports.
• Strategic Focus: Heavy investment in network resiliency through the 2025-2026 Winter Plan and capital program ($3.4B) to mitigate weather disruptions and improve fluidity.
• Operational Efficiency: Recent grain movement records indicate high utilization of capacity, suggesting strong demand for rail transport services despite macroeconomic headwinds.