Canadian Pacific Railway Ltd. said on Monday a subsidiary will issue $350 million in notes to make payments toward a pension plan, the Associated Press reports.
The notes issued by Canadian Pacific Railway Co. will be due in 2023 and pay interest at 4.45 percent. The transaction is expected to close on Thursday.
The railroad expects proceeds of about $346 million, which it will use along with other money to make a voluntary prepayment this year of up to 650 million Canadian dollars ($631.1 million U.S.)
Canadian Pacific said its estimated pension contributions this year will be $185 million to $195 million before the prepayment, and up to $845 million after the prepayment.
Canadian Pacific shares rose 58 cents to close at $62.26.
(This item was distributed Sept. 21, 2010, by the Associated Press.)
