Summary
Norfolk Southern Corporation (NSC) filed an 8-K/A amendment on September 7, 2004, detailing a new $1 billion, 5-year unsecured revolving credit facility entered into on August 31, 2004. This facility replaces a prior credit agreement and is established with a syndicate of prominent financial institutions, including JPMorgan Chase Bank, Citibank, and Wachovia Bank. The credit line is available for general corporate purposes, including supporting commercial paper debt, and features variable interest rates based on the Prime Rate or LIBOR, influenced by NSC's debt ratings. The agreement includes standard financial covenants related to consolidated net worth and borrowing ratios, as well as limitations on additional indebtedness. The termination of the previous $1 billion credit facility, dated October 4, 2001, occurred on the same day the new agreement was signed, without incurring early termination penalties. This proactive refinancing demonstrates NSC's commitment to maintaining robust liquidity and financial flexibility.
Key Highlights
- 1Norfolk Southern (NSC) established a new 5-year, $1 billion unsecured revolving credit facility on August 31, 2004.
- 2The new credit facility replaces a previous $1 billion facility dated October 4, 2001.
- 3The new agreement was entered into without any early termination penalties associated with the prior facility.
- 4The credit facility is unsecured and available for general corporate purposes, including supporting commercial paper.
- 5Interest rates on borrowings can vary, tied to the Prime Rate or LIBOR, and may be influenced by NSC's credit ratings.
- 6The agreement includes typical financial covenants concerning net worth, borrowing ratios, and limitations on other debt.
- 7A syndicate of major banks, including JPMorgan Chase, Citibank, and Wachovia, are participating as lenders and agents.