Business Context and Reporting Period
This Form 6-K filing by Canadian Pacific Railway Limited (CP) is dated January 28, 2009. The report serves as a correction to a press release issued on January 27, 2009, regarding a common equity offering. CP operates as a rail freight provider across Canada and the United States.
Key Financial Metrics
The filing details a specific capital raising event rather than periodic financial performance metrics such as revenue or operating margins.
- Offering Size: 12,600,000 common shares.
- Share Price: C$36.75 per share.
- Over-Allotment Option: Underwriters have an option to purchase up to an additional 1,300,000 shares.
- Gross Proceeds: Approximately C$463 million (C$511 million if the option is fully exercised).
- Use of Proceeds: Reduction of indebtedness, funding of capital projects, and general corporate purposes.
The filing text does not provide clear values for revenue, profit, cash flow, margins, or total debt levels outside the context of this specific offering.
Material Changes
The primary material change reported is the correction of numerical errors in the previous day's announcement regarding the equity offering. The corrected figures clarify the gross proceeds as approximately C$463 million and C$511 million (with option), correcting previous typos that erroneously stated "C$463,050,000 million" and "C$510,825,000 million."
Guidance, Outlook, and Risks
Management Commentary: Management reaffirmed its commitment to safety and operational fluidity, highlighting its role as the official rail freight services provider for the Vancouver 2010 Olympic and Paralympic Winter Games.
Risks and Contingencies: The offering is subject to regulatory approvals. Sales in Canada cannot occur until a final prospectus receipt is issued, and sales in the United States are contingent upon the registration statement becoming effective. The preliminary prospectus is subject to completion or amendment.
Investor Verification Checklist
- Verify the final closing date of the offering, currently scheduled for February 10, 2009.
- Confirm whether the underwriters exercise the option to purchase the additional 1,300,000 shares.
- Review the final prospectus filed with Canadian Securities Commissions and the SEC for complete risk factors.
- Monitor the effective date of the U.S. registration statement to confirm when shares can be sold to U.S. persons.