Canadian Pacific sells $500 million in debt
Written by William C. Vantuono, Editor-in-ChiefCanadian 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.
