CP SHIPS GETS $250-MILLION LOANS

CP SHIPS GETS $250-MILLION LOANS

   CP Ships, the London-based liner shipping group, is close to concluding a $250-million secured five-year revolving credit facility to finance new containerships.

   Citibank N.A. has underwritten $250 million of the loan facility, which is expected to be $350 million in total. CP Ships expects the underwritten portion of the facility to be closed by the end of the year.

   The loans have been placed with banks with experience of lending to the shipping industry.

   CP Ships said that it will use the money primarily to finance its previously announced $800-million ship investment program. The group has ordered 10 ships for delivery from mid-2002 to mid-2003 that will replace chartered ships.

   The new facility replaces a planned $255-million private placement announced in September by CP Ships’ former parent, Canadian Pacific Ltd.

   CP Ships also has in place a secured $175-million revolving credit facility which became effective in August.

   CP Ships is the parent company of ANZDL, Canada Maritime, Cast, Contship Containerlines, Lykes Lines and TMM Lines, and is currently completing the takeover of Nordana.