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CSX CORP 8-K Report, Material Agreement (Dec 4, 2020)

Reports
Material Agreements·Exhibits & Filings
Filing Date
Filed December 4, 2020
Period End
December 1, 2020
Security
CSX
In the record · 2016–202610-K1110-Q328-K137

CSX filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 137 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · May ’17May ’17
  2. Leadership change8-K · Feb ’20Feb ’20
  3. Material agreement8-K · Jul ’22Jul ’22
  4. Leadership change8-K · May ’26May ’26

01—Abstract

Summary

Summary of the 8-K filed December 4, 2020. Cited figures are marked; the original filing is the authoritative source.

CSX Corporation (CSX) announced on December 1, 2020, its entry into an Underwriting Agreement for the public offering of $500 milliona in aggregate principal amount of 2.500% Notes due 2051.

This offering is being made under the company's existing shelf registration statement. The notes are being sold to underwriters who will then resell them to the public. The transaction is expected to close on December 10, 2020, subject to standard closing conditions.

This issuance of long-term debt indicates CSX's strategy to secure financing at a fixed rate. Investors should note the coupon rate of 2.500%b, which reflects the prevailing interest rate environment and the company's credit profile at the time of issuance. The proceeds from this offering will likely be used for general corporate purposes, which could include funding capital expenditures, acquisitions, or refinancing existing debt.

02—Key points

Key Highlights

  1. CSX Corporation entered into an Underwriting Agreement on December 1, 2020.
  2. The company is publicly offering $500,000,000 in aggregate principal amount of 2.500% Notes due 2051.
  3. The offering is being conducted under a previously established shelf registration statement (Form S-3ASR).
  4. The Underwriting Agreement includes customary representations, warranties, covenants, indemnification, and contribution provisions.
  5. The offering is expected to close on December 10, 2020.
  6. The filing includes the Underwriting Agreement as an exhibit.

03—Questions

Frequently Asked Questions

  1. What is the purpose of this 8-K filing?

    This 8-K filing announces CSX Corporation's entry into a material definitive agreement, specifically an Underwriting Agreement for the public offering of $500 million in 2.500% Notes due 2051.

  2. What are the key terms of the new notes being issued?

    CSX is issuing $500 million of 2.500% Notes due in 2051. The interest rate on these notes is fixed at 2.500% per annum.

  3. What are the typical uses for proceeds from such a debt offering?

    While not explicitly stated in this filing, proceeds from debt offerings are generally used for general corporate purposes, which can include funding capital expenditures, strategic acquisitions, share repurchases, or refinancing existing debt obligations.

  4. When is the expected closing date for this note offering?

    The offering of the Notes is expected to close on December 10, 2020, subject to the satisfaction of customary closing conditions.

04—Continue

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