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.