CP Ships is in the process of closing a secured five year revolving credit facility. Citibank N.A. has underwritten US$ 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 programme.

The investment programme, 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 2nd August 2001. The new facility replaces a planned $255 million private placement announced on 21st September 2001 by CP Ships' former parent, Canadian Pacific Limited.

CP Ships presence in the Latin American Market

The acquisition of Lykes Lines and Contship Containerlines in 1997 provided a platform for CP Ships' development in Latin America. This platform was expanded with the acquisition of Ivaran (now marketed under the Lykes Lines brand) in 1998 and the formation of the Americana Ships joint venture with TMM in 1999.

In 2000, 10% of CP Ships' volume was in the Latin American market, with services under the Lykes Lines, TMM Lines and Contship Containerlines brands.