CALGARY, March 3, 2020 /CNW/ - Canadian Pacific
Railway Limited ("CP") (TSX:CP)(NYSE:CP) announces that its
wholly-owned subsidiary, Canadian Pacific Railway Company, is
issuing US$500 million of 2.050%
Notes due 2030.
The transaction is expected to close on March 5, 2020, subject to the satisfaction of
customary closing conditions.
The net proceeds from this offering will be used primarily for
the reduction and refinancing of outstanding indebtedness and for
general corporate purposes. Until utilized for such purposes, the
net proceeds may be invested in short term investment grade
securities or bank deposits.
The joint book-running managers of the debt offering are
Barclays Capital Inc., Citigroup Global Markets Inc., HSBC
Securities (USA) Inc., Morgan
Stanley & Co. LLC, BofA Securities, Inc. and Wells Fargo
Securities, LLC. The co-managers are BMO Capital Markets Corp.,
CIBC World Markets Corp., RBC Capital Markets, LLC, Scotia Capital
(USA) Inc., SMBC Nikko Securities
America, Inc. and Desjardins Securities Inc.
The offering is being made pursuant to an effective shelf
registration statement previously filed with the Securities and
Exchange Commission (the "SEC"). Copies of these documents may be
obtained without charge from the SEC at www.sec.gov. Alternatively,
you may request copies of the prospectus supplement and the
accompanying prospectus for the offering by contacting Barclays
Capital Inc., Attn: Prospectus Department, c/o Broadridge Financial
Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: 1-888-603-5847;
Citigroup Global Markets Inc., c/o Broadridge Financial Solutions,
1155 Long Island Avenue, Edgewood,
NY 11717, telephone: 1-800-831-9146; HSBC Securities
(USA) Inc., 452 Fifth Avenue,
New York, New York, 10018,
telephone: 1-866-811-8049, email: debtprospectus@us.hsbc.com and
Morgan Stanley & Co. LLC, Attn: Prospectus Department, 180
Varick Street, 2nd Floor, New York,
NY 10014, telephone: 1-866-718-1649;
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor will there be
any sale of these securities, in Canada or in any jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such
jurisdiction. Under the terms of the offering, the
underwriters have agreed not to offer or sell these securities in
Canada or to any resident of
Canada.
Forward Looking Statement
This news release contains
certain forward-looking information and forward-looking statements
(collectively, "forward-looking information") within the meaning of
applicable securities laws. Forward-looking information 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.
This news release contains forward-looking information relating,
but not limited to, the intended use of proceeds from the offering
including the reduction and refinancing of outstanding indebtedness
and the timing and completion of the proposed debt offering.
The forward-looking information contained in this news release
is based on current expectations, estimates, projections and
assumptions, having regard to CP's experience and its perception of
historical trends, and includes, but is not limited to,
expectations, estimates, projections and assumptions relating to:
foreign exchange rates, effective tax rates, land sales and pension
income; North American and global economic growth; commodity demand
growth; sustainable industrial and agricultural production;
commodity prices and interest rates; performance of our assets and
equipment; sufficiency of our budgeted capital expenditures in
carrying out our business plan; our ability to complete our capital
and maintenance projects on the timelines anticipated; applicable
laws, regulations and government policies; the availability and
cost of labour, services and infrastructure; and the satisfaction
by third parties of their obligations to CP. Although CP believes
the expectations, estimates, projections and assumptions reflected
in the forward-looking information presented herein are reasonable
as of the date hereof, there can be no assurance that they will
prove to be correct.
Undue reliance should not be placed on forward-looking
information as actual results may differ materially from those
expressed or implied by forward-looking information. By its nature,
CP's forward-looking information involves 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: the inability to complete the debt
financing in a timely manner or at all due to, among other reasons,
the conditions to closing not being met; changes in business
strategies; general North American and global economic, credit and
business conditions; risks associated with 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, regulations and government policies, including regulation of
rates; changes in taxes and tax rates; potential increases in
maintenance and operating costs; changes in fuel prices;
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; trade restrictions or other changes to international
trade arrangements; climate change; and various events that could
disrupt operations, including severe weather, such as droughts,
floods, avalanches and earthquakes, and cybersecurity attacks, 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 "Risk Factors"
and "Management's Discussion and Analysis of Financial Condition
and Results of Operations - Forward-Looking Information" in CP's
annual and interim reports on Form 10-K and 10-Q.
The forward-looking information contained in this news release
is made as of the date hereof. Except as required by law, CP
undertakes no obligation to update publicly or otherwise revise any
forward-looking information, or the foregoing assumptions and risks
affecting such forward-looking information, whether as a result of
new information, future events or otherwise.
About Canadian Pacific
Canadian Pacific is a
transcontinental railway in Canada
and the United States with direct
links to major ports on the west and east coasts. CP provides North
American customers a competitive rail service with access to key
markets in every corner of the globe. CP is growing with its
customers, offering a suite of freight transportation services,
logistics solutions and supply chain expertise. CP-IR
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SOURCE Canadian Pacific