By Andrea Heisinger
New York, May 12 - Canadian Pacific Railway Co. sold an upsized $350 million of 7.25% 10-year notes Tuesday at Treasuries plus 412.5 basis points, according to a market source and FWP Securities and Exchange Commission filing.
The size was originally $300 million, a source said.
The notes (Baa3/BBB) priced at 99.663 to yield 7.298%. They have a make-whole call at Treasuries plus 50 bps.
Bookrunners were J.P. Morgan Securities and Morgan Stanley & Co. Co-managers were NBF Securities and RBC Capital Markets.
Proceeds will be used to partially finance the repurchase of outstanding long-term securities in a tender offer. The remainder will be used for general corporate purposes.
The subsidiary of Canadian Pacific Railway Ltd. is based in Calgary, Alta.
| Issuer: | Canadian Pacific Railway Co.
|
| Issue: | Notes
|
| Amount: | $350 million, increased from $300 million
|
| Maturity: | May 15, 2019
|
| Bookrunners: | J.P. Morgan Securities, Morgan Stanley & Co.
|
| Co-managers: | NBF Securities, RBC Capital Markets
|
| Coupon: | 7.25%
|
| Price: | 99.663
|
| Yield: | 7.298%
|
| Spread: | Treasuries plus 412.5 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Trade date: | May 12
|
| Settlement date: | May 15
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
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