CALGARY, March 5, 2020 /PRNewswire/ - Canadian Pacific
Railway Limited ("CP") (TSX:CP) (NYSE:CP) announces that its
wholly- owned subsidiary, Canadian Pacific Railway Company, is
issuing C$300 million of 3.05% Notes
due 2050, which will be guaranteed by Canadian Pacific Railway
Limited.
The transaction is expected to close on March 9, 2020, subject to the satisfaction of
customary closing conditions. The net proceeds from this offering
will be used primarily for the refinancing of outstanding
indebtedness and for general corporate purposes.
The joint book-runners for the debt offering are RBC Dominion
Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc.
and Scotia Capital Inc.
The offering is being made in Canada under Canadian Pacific Railway
Company's base shelf prospectus dated March
1, 2019, as supplemented on March 5,
2020.
The securities have not been registered under the U.S.
Securities Act of 1933, as amended, or any state securities laws,
and may not be offered or sold in the
United States or to U.S. persons.
Note on forward-looking information
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