New Issue: Canadian Pacific Railway prices $500 million 4% 10-year notes at 102 bps spread

By Cristal Cody

Tupelo, Miss., May 14 – Canadian Pacific Railway Co. sold $500 million of 4% 10-year notes (Baa1/BBB+) on Monday at a spread of 102 basis points over Treasuries, according to an FWP filed with the Securities and Exchange Commission.

The notes priced at 99.908 to yield 4.011%.

Morgan Stanley & Co. LLC, Barclays, Wells Fargo Securities LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and BofA Merrill Lynch were the bookrunners.

The notes are guaranteed by Canadian Pacific Railway Ltd.

Proceeds will be used for debt reduction and refinancing and for general corporate purposes.

The railroad operator is based in Calgary, Alta.

Issuer:	Canadian Pacific Railway Co.
Guarantor:	Canadian Pacific Railway Ltd.
Amount:	$500 million
Description:	Notes
Maturity:	June 1, 2028
Bookrunners:	Morgan Stanley & Co. LLC, Barclays, Wells Fargo Securities LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and BofA Merrill Lynch
Co-managers:	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.
Coupon:	4%
Price:	99.908
Yield:	4.011%
Spread:	Treasuries plus 102 bps
Call feature:	Make-whole call before March 1, 2028 at greater of par or Treasuries plus 15 bps; thereafter at par
Change-of-control put:	101%
Trade date:	May 14
Settlement date:	May 16
Expected ratings:	Moody’s: Baa1
	S&P: BBB+
Distribution:	SEC registered

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