Tuesday, November 29, 2011

Canadian Pacific sells $500 million in debt

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Canadian Pacific Railway Ltd. announced Tuesday that that subsidiary Canadian Pacific Railway Co. is issuing: US$250 million of 4.50% Notes due 2022 and US$250 million of 5.75% Notes due 2042. The transaction is expected to close on Dec.1.

CP said the offering is being made in the U.S. under a base shelfprospectus dated June 29, 2011 which allows for offerings of up to US$1.5billion of debt securities. The net proceeds will be used for a voluntaryprepayment in 2011 to CP’s Canadian defined benefit pension plans.