CALGARY, April 28, 2016 /CNW/ - Canadian Pacific
Railway Limited (TSX: CP) (NYSE: CP) announces that the Toronto
Stock Exchange (TSX) has accepted its notice to implement a normal
course issuer bid (NCIB) to purchase, for cancellation, up to
6,910,000 common shares or approximately 5 percent of CP's "public
float", as at April 19, 2016. The
NCIB is scheduled to commence on May 2,
2016 and is due to terminate no later than May 1, 2017.
Purchases of CP common shares under the NCIB may be made through
the facilities of the TSX, the New York Stock Exchange (NYSE) and
alternative trading platforms by means of open market transactions
or by such other means as may be permitted by the TSX and under
applicable securities laws, including by private agreement pursuant
to issuer bid exemption orders issued by applicable securities
regulatory authorities. The price CP will pay for any common shares
will be the market price at the time of purchase or such other
price as may be permitted by the TSX. Any private purchase made
under an exemption order issued by a securities regulatory
authority will generally be at a discount to the prevailing market
price.
As of April 19, 2016, CP had
153,059,426 common shares issued and outstanding. CP will not
acquire through the facilities of the TSX more than 116,562 common
shares during a trading day, being 25 percent of the average daily
trading volume of CP common shares on the TSX for the six calendar
months prior to the date of approval of the bid by the TSX and, in
addition, will not acquire per day on the NYSE more than 25 percent
of the average daily trading volume for the four calendar weeks
preceding the date of purchase, subject to, in both cases, certain
exceptions for block purchases.
The actual number of common shares that will be repurchased
under the NCIB, and the timing of any such purchases, will be
determined by CP, subject to the limits imposed by the TSX. There
cannot be any assurances as to how many common shares, if any, will
ultimately be acquired by CP.
CP believes that the purchase of its shares from time to time is
an appropriate and advantageous use of its funds.
CP purchased 11,375,189 of its common shares at a weighted
average price of $198.46 under its
previous normal course issuer bid, which expired March 17, 2016.
Note on forward-looking information
This news release contains certain forward-looking information
within the meaning of applicable securities laws relating, but not
limited, to future purchases of CP's common shares for cancellation
under the NCIB. This forward-looking information also 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.
Undue reliance should not be placed on forward-looking
information as actual results may differ materially from the
forward-looking information. Forward-looking information is not a
guarantee of future performance. By its nature, CP's
forward-looking information involves numerous assumptions, 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: changes in business strategies;
general North American and global economic, credit and business
conditions; risks in 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 and
regulations, including regulation of rates; changes in taxes and
tax rates; potential increases in maintenance and operating costs;
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; and various events that could disrupt operations,
including severe weather, droughts, floods, avalanches and
earthquakes 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
"Item 1A - Risk Factors" and "Item 7 - 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. Readers are cautioned not to place undue
reliance on forward-looking information. Forward looking
information is based on current expectations, estimates and
projections and it is possible that predictions, forecasts,
projections, and other forms of forward-looking information will
not be achieved by CP. Except as required by law, CP undertakes no
obligation to update publicly or otherwise revise any
forward-looking information, whether as a result of new
information, future events or otherwise.
About Canadian Pacific
Canadian Pacific
(TSX:CP)(NYSE:CP) is a transcontinental railway in Canada and the
United States with direct links to eight major ports,
including Vancouver and
Montreal, providing 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. Visit cpr.ca to see the rail
advantages of Canadian Pacific.
SOURCE Canadian Pacific