3 May 2007
Canadian Pacific Announces US$450 Million Debt Offering
Canadian Pacific Railway Limited
announced today that its wholly-owned subsidiary, Canadian Pacific Railway
Company, is issuing US$450 million of 5.95% Notes due 15 May 2037. The
transaction is expected to close 8 May 2007. The net proceeds from this
offering of approximately US$439 million will be used to repay an outstanding
balance on a revolving credit facility, provide funding to finance the
repurchase of CP shares through normal course issuer bids and for general
corporate purposes.
The debt offering is being made in the United States under the shelf
registration statement filed on 2 May 2007 for up to US$1.5 billion of debt
securities.
Mike Lambert, CP's Executive Vice President and Chief Financial Officer
said, "With our strong balance sheet and cash flows, and with an attractive
capital market, we felt now was the time for a new debt issue. We will
continue to manage our credit statistics and coverage ratios to optimize our
capital structure and create shareholder value."
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