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Canadian Pacific Railway is issuing $375 million worth of 6.25 percent notes due June 1, 2018, to help repay a portion of debt incurred to acquire the Dakota, Minnesota & Eastern Railroad Corp. (DM&E).

Expected to close Wednesday, the transaction will net proceeds totaling about $371 million. The debt offering is being made in under a previously filed base shelf prospectus from June 2007.

Earlier this month, CPR issued $400 million worth of 5.75 percent notes due May 15, 2013, and $300 million worth of 6.5 percent notes due May 15, 2018, that generated about $693 million in net proceeds to help repay DM&E transaction-related debt.

Meanwhile, Kansas City Southern today announced its U.S. subsidiary The Kansas City Southern Railway Co. will offer $250 million in senior notes due 2015. The railroad will use net proceeds to repurchase $200 million aggregate principal amount of 9.5 percent senior notes due 2008 and reduce debt under a revolving credit facility.