Summary
CSX Corporation (CSX) filed an 8-K report on October 20, 2010, detailing a material definitive agreement. The company entered into an Underwriting Agreement on October 18, 2010, for the public offering of $500 million in 3.700% Notes due 2020 and $300 million in 5.500% Notes due 2041, totaling $800 million in debt. These notes were registered under the Securities Act of 1933 and became effective on February 19, 2010, with a prospectus supplement filed on October 19, 2010. This issuance represents a significant capital raise for CSX, aimed at strengthening its financial position or funding operational needs. Investors should note the terms of these new debt obligations, including their respective interest rates and maturity dates, as they will impact the company's leverage and future interest expense. The involvement of major underwriters like J.P. Morgan Securities, Morgan Stanley, and Credit Suisse indicates the market's confidence in the offering.
Key Highlights
- 1CSX Corporation entered into an Underwriting Agreement on October 18, 2010.
- 2The agreement pertains to the public offering of $500 million in 3.700% Notes due 2020.
- 3Additionally, $300 million in 5.500% Notes due 2041 were offered.
- 4The total aggregate principal amount of the offering is $800 million.
- 5The Notes are issued under an established Indenture, as supplemented by various supplemental indentures.
- 6The offering was registered under the Securities Act of 1933, with a Registration Statement effective since February 19, 2010.
- 7A Prospectus and Prospectus Supplement detailing the offering were filed with the SEC on October 19, 2010.