30 August 2011

Canadian Pacific Announces Redemption of Notes

Calgary, Alberta - Canadian Pacific Railway Limited announced today that its wholly owned subsidiary, Canadian Pacific Railway Company, will redeem on 30 Sep 2011 all of the US$101.4 million outstanding principal amount of its 5.75% Notes due 15 May 2013.
 
The redemption price of the Notes will be determined on 27 Sep 2011 based on the formula set forth in the indenture governing the Notes. The impact of this transaction is estimated to reduce diluted earnings per share by four cents in the third quarter of 2011.
 
On and after the date of redemption, the Notes will no longer be outstanding, interest thereon will cease to accrue, and all rights of the holder of the Notes will cease to exist, except for the right to receive the redemption price, without interest thereon.
 
"The redemption of these notes supports our strategy to reduce and restructure our overall indebtedness while continuing to reinvest in the franchise", stated Kathryn McQuade, Executive Vice-President and Chief Financial Officer.
 
The notice of redemption will be sent to registered holders of the Notes on or about 30 Aug 2011. Notes are to be surrendered to The Bank of New York, as trustee and paying agent, in exchange for payment of the redemption price.