CP Ships Secures Financing

CP Ships is in the process of closing a secured five year revolving credit facility. Citibank N.A. has underwritten $ 250 million of the facility, which is expected to be $350 million in total. Closing of the underwritten portion of the facility is expected by the end of the year. The facility, which has been placed with banks with extensive experience of lending to the shipping industry, will be used primarily to finance CP Ships' previously announced $800 million ship investment program.

The investment program, which continues as planned with deliveries of 10 new ships expected from mid-2002 to mid-2003, will replace chartered ships with more economic ships specifically designed to match the requirements of CP Ships' regional trades. CP Ships also has in place a secured $175 million revolving credit facility, which became effective on August 2, 2001. The new facility replaces a planned $255 million private placement announced on September 21 by CP Ships' former parent, Canadian Pacific Limited.