Canadian Pacific Railway Co., Calgary, Alberta, is offering senior unsecured notes in the U.S. to fund a voluntary contribution to its Canadian defined benefit plan in 2011, confirmed spokeswoman Nicole Sasaki.
It is being made under a base shelf prospectus of June 29 for up to US$1.5 billion of debt securities, according to a news release from the company. The issue size, maturity, interest rate and net proceeds have yet to be determined.
As of Dec. 31, 2010, the company's defined benefit plans had C$8.31 billion (US$8.35 billion) with projected benefit obligations of C$8.98 billion. Employer contributions for 2010 totaled C$837.2 million with expected contributions for 2011 of C$100 million to C$125 million, according to the company's 2010 annual report.
Ms. Sasaki had no further information on the actual amount of the planned contribution or the asset size or liability of the company's Canadian defined benefit plan.