Summary
Norfolk Southern Corporation (NSC) filed an 8-K on June 27, 2007, reporting an amendment and restatement of its $1 billion unsecured revolving credit facility. The primary change is the extension of the facility's maturity date to June 26, 2012. This action provides NSC with extended financial flexibility for general corporate purposes, including the support of its commercial paper program. The amended agreement outlines a robust syndicate of lenders, including major financial institutions such as JPMorgan Chase Bank, Citibank, and Barclays Bank. The facility features variable interest rates, influenced by the Prime Rate or LIBOR plus a spread based on NSC's long-term debt rating, along with standard financial covenants related to borrowing ratios and debt limitations. This update signals a proactive approach by management to secure long-term financing and maintain a strong liquidity position.
Key Highlights
- 1NSC amended and restated its $1 billion unsecured revolving credit facility.
- 2The maturity date of the credit facility has been extended to June 26, 2012.
- 3The facility can be used for general corporate purposes, including supporting commercial paper debt.
- 4The amended agreement involves a significant syndicate of lenders, including major banks.
- 5Interest rates are variable and linked to Prime Rate, LIBOR, and NSC's credit rating.
- 6The agreement includes customary financial covenants and limitations on additional debt.
- 7No new direct financial obligations were created as of the filing date.