CALGARY, May 3 /PRNewswire-FirstCall/ -- Canadian Pacific Railway Limited (TSX/NYSE: CP) announced today that its wholly-owned subsidiary, Canadian Pacific Railway Company, is issuing US$450 million of 5.95% Notes due May 15, 2037. The transaction is expected to close May 8, 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 May 2, 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."
Canadian Pacific, through the ingenuity of its employees located across Canada and in the United States, remains committed to being the safest, and most fluid railway in North America. Our people are the key to delivering innovative transportation solutions to our customers and to ensuring the safe operation of our trains through the more than 900 communities where we operate. Our combined ingenuity makes CP a better place to work, rail a better way to ship, and North America a better place to live. Come and visit us at http://www.cpr.ca/ to see how we can put our ingenuity to work for you. Canadian Pacific is proud to be the official rail freight services provider for the Vancouver 2010 Olympic and Paralympic Winter Games.
