8-KMaterial Agreements

NORFOLK SOUTHERN CORP 8-K Report, Material Agreement (Oct 20, 2011)

Filed October 20, 2011For Securities:NSC

Summary

Norfolk Southern Corporation (NSC) filed an 8-K on October 20, 2011, to report the entry into Amendment No. 8 to its Transfer and Administration Agreement. This amendment effectively renews the company's receivables securitization facility, a crucial source of short-term funding. The agreement involves NSC, its operating subsidiary Norfolk Southern Railway Company (NSR), Thoroughbred Funding, Inc., various investors (Conduit and Committed), Managing Agents, and JPMorgan Chase Bank, N.A. as the Administrative Agent. This renewal indicates that NSC continues to utilize its securitization program to manage its working capital and maintain financial flexibility. While the specifics of the facility's terms are not detailed in this 8-K, the amendment signifies ongoing confidence in this funding mechanism and the company's ability to access capital markets. Investors should view this as a standard operational update related to its treasury management and financing strategy.

Key Highlights

  • 1Norfolk Southern Corporation (NSC) filed an 8-K on October 20, 2011, reporting a material definitive agreement.
  • 2The company entered into Amendment No. 8 to its Transfer and Administration Agreement, dated October 20, 2011.
  • 3This amendment serves to renew NSC's receivables securitization facility.
  • 4Key parties involved include NSC, its subsidiary Norfolk Southern Railway Company (NSR), Thoroughbred Funding, Inc., various investors, and JPMorgan Chase Bank, N.A. as Administrative Agent.
  • 5The filing indicates the continued use and renewal of a significant financing arrangement for working capital management.
  • 6No material changes to the core business operations or financial performance are directly disclosed in this filing, which focuses on a financing agreement amendment.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report the entry into Amendment No. 8 to Norfolk Southern Corporation's Transfer and Administration Agreement, which renews its receivables securitization facility. This is a disclosure of a material definitive agreement related to the company's financing activities.

A receivables securitization facility is a financing arrangement where a company sells its accounts receivable to a special purpose entity (SPE) or directly to investors to obtain immediate cash. For NSC, this facility is an important source of short-term funding and liquidity, helping to manage working capital needs by converting future cash flows from receivables into present cash.

This 8-K filing itself does not disclose the specific financial terms or changes within Amendment No. 8. It only announces the entry into the amendment and the renewal of the facility. Further details would typically be found in the full amendment document, which is attached as an exhibit.

JPMorgan Chase Bank, N.A. is acting as the Administrative Agent for the investors in the securitization facility, and also as a Managing Agent. This role indicates their significant involvement in managing the facility's operations, administration, and coordination among the various parties involved in the financing arrangement.