20 September 2010

Canadian Pacific Announces a $350 Million Debt Offering and a Prepayment to its Pension Plans

Canadian Pacific Railway Limited announced today that its wholly owned subsidiary, Canadian Pacific Railway Company, is issuing US$350 million of 4.45% Notes due 15 Mar 2023. The transaction is expected to close 23 Sep 2010.
 
The debt offering is being made in the United States under the base shelf prospectus dated 26 Jun 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 $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.