What is the purpose of this $600 million debt issuance?

The net proceeds from the issuance of the 5.750% Senior Notes due 2018 are intended by Norfolk Southern Corporation for general corporate purposes. This typically includes funding operations, capital expenditures, or other strategic business needs.

What are the key terms of the new Senior Notes?

The notes have an aggregate principal amount of $600 million, mature in 2018, and bear a fixed interest rate of 5.750% per annum, payable semi-annually. They are also redeemable at the company's option.

When will the registered notes be available to investors?

Norfolk Southern is obligated to file an exchange offer registration statement with the SEC within 180 days of the closing date and use commercially reasonable efforts to have it declared effective within 270 days from the closing date. This process is to allow for an exchange of the original notes for registered securities.

What is the net amount Norfolk Southern expects to receive from this offering?

Norfolk Southern estimates that the net proceeds from the offering will be approximately $594 million, after deducting the initial purchasers' discount and estimated offering expenses.

NSC 8-K: Material Agreements & Financial Events

Summary

Norfolk Southern Corporation (NSC) announced on April 4, 2008, that it entered into a Purchase Agreement on April 1, 2008, to issue $600 million in aggregate principal amount of 5.750% Senior Notes due 2018. These notes will bear interest semi-annually and are redeemable at the company's option. The net proceeds, estimated at approximately $594 million after expenses, are intended for general corporate purposes. This debt issuance represents a significant financing event for NSC, providing capital for its ongoing operations and strategic initiatives. Investors should note the terms of the debt, including the interest rate, maturity date, and redemption provisions, as these will impact the company's future financial obligations and cash flows.

Key Highlights

1NSC entered into a Purchase Agreement on April 1, 2008, to issue $600 million of Senior Notes due 2018.
2The Senior Notes will carry a fixed interest rate of 5.750% per annum, payable semi-annually.
3Net proceeds from the offering are estimated to be approximately $594 million.
4The company plans to use the net proceeds for general corporate purposes.
5The notes are redeemable at the company's option under specific terms outlined in the agreement.
6A registration rights agreement mandates NSC to file an exchange offer registration statement within 180 days of closing.

NORFOLK SOUTHERN CORP 8-K Report, Material Agreement (Apr 4, 2008)

Summary

Key Highlights

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