Canadian Pacific Railway Ltd. said May 14 that wholly owned unit Canadian Pacific Railway Co. will issue US$500 million notes due 2028.

Proceeds of the notes, which carry a 4.000% coupon rate, will be used to reduce and refinance outstanding debt and for general corporate purposes. The offering is expected to close May 16, subject to customary closing conditions.

The joint book-running managers of the debt offering are Morgan Stanley & Co. LLC, Barclays Capital Inc. and Wells Fargo Securities LLC.