advertisement

---

Canadian Pacific’s board recently approved a $70 million increase in 2010 capital spending. The Class I’s capex budget now falls between $750 million and $800 million.

“The improving economy, our strong balance sheet, and solid earnings and free cash flows have enabled us to expand our capital programs to take advantage of growth and productivity opportunities,” said CP Executive Vice President and Chief Financial Officer Kathryn McQuade in a prepared statement.

The board also increased the next quarterly dividend to 27 cents per share from about 25 cents per share. The increased dividend is payable on July 26 to holders of record at the close of business on June 25.

Meanwhile, RailAmerica Inc. announced plans to redeem $74 million of its 9.25 percent senior secured notes on June 24. After the redemption is completed, $592 million worth of senior secured notes will remain outstanding, according to the company.

“As a result of this debt repayment, we will reduce our cash interest expense by $6.8 million annually while continuing to maintain ample financial resources and flexibility to pursue acquisitions and other investment opportunities,” said RailAmerica President and Chief Executive Officer John Giles.