CALGARY, March 11, 2014 /CNW/ - Canadian Pacific Railway
Limited (TSX: CP) (NYSE: CP) announces that the Toronto Stock
Exchange (TSX) has accepted CP's notice to implement a normal
course issuer bid (NCIB) to purchase, for cancellation, up to
5,270,374 common shares, being 3 percent of the common shares
outstanding as at March 4th,
2014. The NCIB is scheduled to commence on
March 17th, 2014 and is due to
terminate no later than March 16th,
2015.
CP believes that the purchase of its shares from time to time is
an appropriate and advantageous use of the Corporation's funds.
"Today's announcement demonstrates Canadian Pacific's confidence
in the long-term prospects of the company and our commitment to
optimizing capital deployment to enhance total shareholder return,"
said E. Hunter Harrison, Chief
Executive Officer. "Our strong balance sheet and improved cash flow
affords us the flexibility to reward shareholders while continuing
to pursue our business strategy and invest in the franchise."
Purchases of CP common shares may be made through the facilities
of the TSX, the New York Stock Exchange (NYSE) and alternative
trading platforms by means of open market transactions or by such
other means as may be permitted by the TSX and under applicable
securities laws, including by private agreement pursuant to issuer
bid exemption orders issued by applicable securities regulatory
authorities. The price CP will pay for any common shares will be
the market price at the time of purchase or such other price as may
be permitted by the TSX. Any private purchase made under an
exemption order issued by a securities regulatory authority will
generally be at a discount to the prevailing market price.
As of March 4th, 2014, CP had
175,679,130 common shares issued and outstanding. Subject to
certain exceptions to make block purchases, CP will not acquire
through the facilities of the TSX more than 82,954 common shares
during a trading day, being 25 percent of the average daily trading
volume of CP common shares on the TSX for the six calendar months
prior to the date of approval of the bid by the TSX.
The actual number of common shares that will be repurchased
under the NCIB, and the timing of any such purchases, will be
determined by CP. There cannot be any assurances as to how many
common shares, if any, will ultimately be acquired by CP under the
NCIB.
Note on forward-looking information
This news release contains certain forward-looking information
within the meaning of applicable securities laws relating, but not
limited, to future sources of capital and future purchases of CP's
common shares. This forward-looking information also includes, but
is not limited to, statements concerning expectations, beliefs,
plans, goals, objectives, assumptions and statements about possible
future events, conditions, and results of operations or
performance. Forward-looking information may contain statements
with words or headings such as "financial expectations", "key
assumptions", "anticipate", "believe", "expect", "plan", "will",
"outlook", "should" or similar words suggesting future
outcomes.
Undue reliance should not be placed on forward-looking
information as actual results may differ materially from the
forward-looking information. Forward-looking information is not a
guarantee of future performance. By its nature, CP's
forward-looking information involves numerous assumptions, inherent
risks and uncertainties that could cause actual results to differ
materially from the forward-looking information, 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
commodity prices; uncertainty surrounding timing and volumes of
commodities being shipped via CP; inflation; changes in laws and
regulations, including regulation of rates; changes in taxes and
tax rates; potential increases in maintenance and operating costs;
uncertainties of investigations, proceedings or other types of
claims and 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; and various events that could disrupt operations,
including severe weather, droughts, floods, avalanches and
earthquakes as well as security threats and governmental response
to them, and technological changes. The foregoing list of
factors is not exhaustive.
These and other factors are detailed from time to time in
reports filed by CP with securities regulators in Canada and the
United States. Reference should be made to
"Management's Discussion and Analysis" in CP's annual and interim
reports, Annual Information Form and Form 40-F. Readers are
cautioned not to place undue reliance on forward-looking
information. Forward-looking information is based on current
expectations, estimates and projections and it is possible that
predictions, forecasts, projections, and other forms of
forward-looking information will not be achieved by CP. 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 (TSX:CP)(NYSE:CP) is a transcontinental railway in
Canada and the United States with direct links to eight
major ports, including Vancouver
and Montreal, providing North
American customers a competitive rail service with access to key
markets in every corner of the globe. CP is a low-cost provider
that is growing with its customers, offering a suite of freight
transportation services, logistics solutions and supply chain
expertise. Visit cpr.ca to see the rail advantages of Canadian
Pacific.
SOURCE Canadian Pacific