8-KMaterial AgreementsFinancial EventsOther Events+1

CSX CORP 8-K Report, Material Agreement (Apr 26, 2007)

Filed April 26, 2007For Securities:CSX

Summary

CSX Corporation (CSX) announced on April 25, 2007, the successful completion of a significant debt offering, raising a total of $1 billion through the issuance of new notes. Specifically, the company issued $300 million of 5.600% Notes due 2017 and $700 million of 6.150% Notes due 2037. This offering was conducted under a shelf registration statement and involved a formal Underwriting Agreement with major financial institutions. In addition to the debt issuance, CSX also secured an extension on its revolving credit facility. The maturity date of its $1.25 billion five-year revolving credit facility has been extended by one year, pushing the expiration to May 2012. This extension was confirmed by all participating lenders. These actions indicate proactive capital management by CSX to ensure financial flexibility and fund its ongoing operations and strategic initiatives.

Key Highlights

  • 1CSX Corporation issued $1 billion in new debt, comprising $300 million of 5.600% Notes due 2017 and $700 million of 6.150% Notes due 2037.
  • 2The debt offering was completed on April 20, 2007, under an Underwriting Agreement with Citigroup Global Markets Inc., J.P. Morgan Securities Inc., and Morgan Stanley & Co. Incorporated.
  • 3The notes were issued pursuant to an existing indenture, as supplemented by a Seventh Supplemental Indenture dated April 25, 2007.
  • 4CSX has successfully obtained a one-year extension on its $1.25 billion revolving credit facility, moving the expiration date to May 2012.
  • 5The credit facility extension was confirmed by all participating lenders, ensuring continued access to this important liquidity source.
  • 6These financial maneuvers demonstrate CSX's focus on managing its debt structure and maintaining financial flexibility.

Frequently Asked Questions

The filing does not explicitly state the purpose of the debt issuance. However, typically, such offerings are undertaken to refinance existing debt, fund capital expenditures, support general corporate purposes, or enhance liquidity. Investors should review subsequent financial reports for more detailed information on how these funds were utilized.

Extending the revolving credit facility by one year provides CSX with continued access to a significant source of funding (up to $1.25 billion) and demonstrates the confidence of its lenders. This extension enhances the company's financial flexibility and its ability to manage short-term liquidity needs or unexpected expenses through May 2012.

CSX issued two series of notes: $300 million of 5.600% Notes due 2017 and $700 million of 6.150% Notes due 2037. These are long-term debt instruments with fixed interest rates and specific maturity dates.

This particular 8-K filing focuses on the details of the debt issuance and credit facility extension. It does not mention any specific credit rating changes or outlooks. Investors would typically look to separate press releases from credit rating agencies or subsequent financial filings for such information.