Summary
CSX Corporation (CSX) filed an 8-K on March 26, 2008, to report a material definitive agreement regarding the public offering of debt securities. Specifically, the company entered into an Underwriting Agreement on March 24, 2008, to issue $600 million in 6.250% Notes due 2015 and $400 million in 7.450% Notes due 2038. This issuance represents a significant increase in the company's long-term debt obligations.
Key Highlights
- 1CSX Corporation entered into an Underwriting Agreement on March 24, 2008.
- 2The company plans to issue $600 million aggregate principal amount of 6.250% Notes due 2015.
- 3Additionally, CSX will issue $400 million aggregate principal amount of 7.450% Notes due 2038.
- 4The total aggregate principal amount of the debt offering is $1 billion.
- 5The Notes were issued pursuant to an existing Indenture dated August 1, 1990, as supplemented by several prior indentures.
- 6The offering was registered under the Securities Act of 1933, with a prospectus supplement filed on March 25, 2008.
Frequently Asked Questions
CSX Corporation is issuing a total of $1 billion in aggregate principal amount of notes, consisting of $600 million of 6.250% Notes due 2015 and $400 million of 7.450% Notes due 2038.
The new debt includes $600 million of Notes due 2015 with a coupon rate of 6.250%, and $400 million of Notes due 2038 with a coupon rate of 7.450%.
The 8-K filing does not explicitly state the purpose of the debt issuance, but it is a common practice for companies to raise capital through debt offerings for general corporate purposes, refinancing existing debt, or funding capital expenditures.
The notes are being issued under an Underwriting Agreement dated March 24, 2008, with multiple underwriters, including Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, and Morgan Stanley & Co. Incorporated. They are being issued pursuant to an existing Indenture and supplemental indentures.