CP Rail Sells First Century Bond as Investors Make Longevity Bet
- Railway company founded in 1881 sells 100-year security
- CEO Harrison boosts debt load to fund share-repurchase plan
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More than 100 years after it was formed to link the country, Canadian Pacific Railway Ltd. just convinced the bond market to wager that it will be around for another century.
The railroad’s $900 million 100-year bond, sold with a coupon of 6.125 percent, shows how the once-troubled company has won over investor hearts and minds under new Chief Executive Officer Hunter Harrison, even as it embarks on a share-repurchase plan that would boost its debt load.