fwp
Filed pursuant to Rule 433
Registration No. 333-142347
May 14, 2008
Canadian Pacific Railway Company

Final Term Sheet
     
Issuer:
  Canadian Pacific Railway Company
 
    
Trade Date:
  May 14, 2008
 
    
Settlement Date:
  May 20, 2008
         
    Notes Due 2013   Notes Due 2018
 
        
Principal Amount:
   $400,000,000   $300,000,000
 
        
Coupon:
   5.75%   6.50%
 
        
Maturity Date:
   May 15, 2013   May 15, 2018
 
        
Public Offering Price:
   99.625%   99.588%
 
        
Benchmark:
   UST 3.125% due April 30, 2013   UST 3.875% due May 15, 2018
 
        
Benchmark Yield:
   3.238%   3.957%
 
        
Spread:
   +260 bps   +260 bps
 
        
Yield to Maturity:
   5.838%   6.557%
 
        
Optional Redemption:
   Make whole call UST +40 bps   Make whole call UST +40 bps
 
        
Interest Payment Dates:
   May 15 and November 15, beginning November 15, 2008   May 15 and November 15, beginning November 15, 2008
 
        
CUSIP:
   13645R AG9   13645R AH7
 
        
ISIN:
   US13645RAG92   US13645RAH75
 
        
Joint Bookrunning Managers:   Morgan Stanley & Co. Incorporated
RBC Capital Markets Corporation		    
 
        
Co-Managers:
   Banc of America Securities LLC
    
 
   CIBC World Markets Corp.
    
 
   J.P. Morgan Securities Inc.
    
 
   Scotia Capital (USA) Inc.
    
 
   TD Securities (USA) LLC    
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The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC web site at http://www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free Morgan Stanley & Co. Incorporated at 1-866-718-1649 or RBC Capital Markets Corporation at 1-866-375-6829.