Summary
CSX Corporation filed an 8-K on October 31, 2011, to disclose the results of a purchase option exercised on its Zero Coupon Convertible Debentures due October 30, 2021. The company repurchased $1,000.00 in aggregate principal amount of these debentures for $945.12 in cash. This action reduces the outstanding principal amount of these debentures.
Key Highlights
- 1CSX exercised a purchase option for its Zero Coupon Convertible Debentures due 2021.
- 2The company repurchased $1,000.00 (at maturity value) of the debentures.
- 3The cash consideration paid for the repurchase was $945.12.
- 4Following the repurchase, $4,378,000 (at maturity value) of these debentures remain outstanding.
- 5The yield to maturity on the outstanding debentures was reset to 1.000% per annum as of October 30, 2011.
- 6The information was disclosed via a press release furnished as an exhibit.
Frequently Asked Questions
The primary purpose of this filing was to inform investors about the results of CSX's exercise of a purchase option on its Zero Coupon Convertible Debentures due October 30, 2021, and a subsequent reset of the yield to maturity.
CSX repurchased $1,000.00 in aggregate principal amount at maturity of the debentures for a total cash consideration of $945.12.
The repurchase reduces the total outstanding principal amount at maturity of these specific debentures from $4,379,000 to $4,378,000.
The yield to maturity on the outstanding debentures was reset to 1.000% per annum, effective October 30, 2011.