Summary
CSX Corporation (CSX) has filed an 8-K report on September 23, 2011, to disclose a significant event related to its Zero Coupon Convertible Debentures due October 30, 2021. The company has notified debenture holders of its intent to exercise an obligation to purchase these debentures on October 30, 2011. The purchase price is set at $945.12 per $1,000 original principal amount at maturity, contingent on specific circumstances outlined in the notice.
Key Highlights
- 1CSX Corporation is exercising an obligation to purchase its Zero Coupon Convertible Debentures due October 30, 2021.
- 2The purchase will occur on October 30, 2011.
- 3The purchase price is $945.12 per $1,000 original principal amount at maturity.
- 4The purchase is subject to certain circumstances described in the company's notice to holders.
- 5The yield to maturity for these debentures will be reset to 1.000% per annum on October 30, 2011.
- 6This action is being disclosed under Regulation FD.
Frequently Asked Questions
The main event is CSX Corporation's notification to holders of its Zero Coupon Convertible Debentures due October 30, 2021, about the company's obligation and intention to purchase these debentures on October 30, 2011.
The purchase price is $945.12 for every $1,000 of original principal amount at maturity. This purchase is conditional on circumstances detailed in the notice provided to the debenture holders.
The yield to maturity for the Zero Coupon Convertible Debentures due October 30, 2021, will be reset to 1.000% per annum, effective on October 30, 2011, the date of the purchase obligation.
This information is being disclosed under Item 7.01 Regulation FD Disclosure, which mandates the public disclosure of material non-public information to ensure fair and simultaneous access to information for all investors.