CALGARY, Sept. 20 /PRNewswire-FirstCall/ - Canadian
Pacific Railway Limited (TSX/NYSE: CP) announced today that its
wholly owned subsidiary, Canadian Pacific Railway Company, is
issuing US$350 million of 4.45% Notes
due March 15, 2023. The transaction
is expected to close September 23,
2010.
The debt offering is being made in the
United States under the base shelf prospectus dated
June 26, 2009 which allowed for
offerings of up to US$1.5 billion of
debt securities.
The net proceeds from this offering of approximately
US$346 million, combined with general
corporate funds, will be used for a voluntary prepayment in 2010 of
up to CDN$650 million to the
company's defined benefit pension plans.
CP's estimated 2010 contributions to its defined benefit pension
plans will be between $185 to $195
million before this prepayment and up to $845 million after the prepayment.
A copy of the preliminary prospectus supplement and related base
prospectus may be obtained from the SEC's website at www.sec.gov.
Alternatively, copies will be provided upon written request to:
Office of the Corporate Secretary
Canadian Pacific
Suite 500
401 - 9th Avenue SW
Calgary, AB T2P 4Z4
Note on forward-looking information
This news release contains certain forward-looking statements
relating but not limited to our operations, anticipated financial
performance and business prospects. Undue reliance should not be
placed on forward-looking information as actual results may differ
materially.
By its nature, CP's forward-looking information involves
numerous assumptions, inherent risks and uncertainties, including
but not limited to the following factors: changes in business
strategies; general North American and global economic, credit and
business conditions; risks in agricultural production such as
weather conditions and insect populations; the availability and
price of energy commodities; the effects of competition and pricing
pressures; industry capacity; shifts in market demand; changes in
laws and regulations, including regulation of rates; changes in
taxes and tax rates; potential increases in maintenance and
operating costs; uncertainties of litigation; labour disputes;
risks and liabilities arising from derailments; transportation of
dangerous goods, timing of completion of capital and maintenance
projects; currency and interest rate fluctuations; effects of
changes in market conditions and discount rates on the financial
position of pension plans and investments, including long-term
floating rate notes; and various events that could disrupt
operations, including severe weather conditions, security threats
and governmental response to them, and technological changes.
There are factors that could cause actual results to differ from
those described in the forward-looking statements contained in this
news release. These more specific factors are identified and
discussed elsewhere in this news release with the particular
forward-looking statement in question.
Except as required by law, CP undertakes no obligation to update
publicly or otherwise revise any forward-looking information,
whether as a result of new information, future events or
otherwise.
About Canadian Pacific:
Canadian Pacific, through the ingenuity of its employees located
across Canada and in the United States, remains committed to being
the safest, 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 1,100 communities
where we operate. Our combined ingenuity makes Canadian Pacific a
better place to work, rail a better way to ship, and North America a better place to live. Come and
visit us at www.cpr.ca to see how we can put our ingenuity to work
for you.
SOURCE Canadian Pacific
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