Summary
CSX Corporation (CSX) has announced a significant financing event through an 8-K filing dated July 29, 2004. The company entered into an Underwriting Agreement for a public offering of $300 million in Floating Rate Notes due 2006. These notes will bear interest based on the Three Month LIBOR Rate plus a spread of 30 basis points, with interest payments reset on a quarterly basis. This move indicates CSX's strategy to manage its capital structure and potentially fund operational needs or other corporate initiatives through debt issuance.
Key Highlights
- 1CSX Corporation is issuing $300 million in Floating Rate Notes due 2006.
- 2The notes will bear interest at Three Month LIBOR Rate plus 30 basis points (0.30%).
- 3Interest payments will be reset quarterly, providing a variable interest cost for the company.
- 4The offering is being conducted through an Underwriting Agreement with Barclays Capital Inc. and UBS Securities LLC.
- 5The notes are registered under the Securities Act of 1933 via a Form S-3 registration statement declared effective on March 31, 2004.
- 6The company filed a Prospectus and Prospectus Supplement on July 30, 2004, related to this offering.