8-KMaterial AgreementsFinancial EventsExhibits & Filings

CSX CORP 8-K Report, Material Agreement (Oct 4, 2011)

Filed October 4, 2011For Securities:CSX

Summary

CSX Corporation (CSX) has filed an 8-K to report on a significant update to its credit facilities. On September 30, 2011, the company entered into a new $1 billion, five-year senior unsecured revolving credit agreement, replacing its previous $1.25 billion agreement. This action reflects the company's ongoing efforts to manage its financial structure and ensure access to liquidity. Importantly, at the time of both the new agreement's execution and the termination of the prior agreement, CSX had no outstanding borrowings. This indicates strong liquidity and a proactive approach to its financing needs rather than an immediate draw on funds. Investors can view this as a positive step towards maintaining financial flexibility.

Key Highlights

  • 1CSX entered into a new $1 billion, five-year senior unsecured revolving credit agreement on September 30, 2011.
  • 2The new credit agreement replaces a prior $1.25 billion senior unsecured revolving credit agreement.
  • 3JPMorgan Chase Bank, N.A. serves as the administrative agent for both the new and prior credit agreements.
  • 4There were no outstanding borrowings under the new credit agreement as of the filing date.
  • 5There were no outstanding borrowings under the prior credit agreement at the time of its termination.
  • 6The company's primary goal appears to be managing its credit facilities and ensuring financial flexibility.

Frequently Asked Questions

The main purpose of this 8-K filing is to report that CSX Corporation has entered into a new senior unsecured revolving credit agreement and has terminated its previous one. This updates investors on the company's financing arrangements.

No, as of the filing date (October 3, 2011, relating to an event on September 30, 2011), there were no outstanding borrowings under the new $1 billion credit agreement.

The filing states that the previous $1.25 billion credit agreement was terminated because CSX entered into the new $1 billion agreement. This is a common practice for companies to consolidate or update their credit lines, often to secure more favorable terms or a different maturity profile.

No, the new credit agreement is described as a 'senior unsecured revolving credit agreement,' meaning it is not backed by specific collateral.