8-KMaterial AgreementsFinancial EventsExhibits & Filings

NORFOLK SOUTHERN CORP 8-K Report, Material Agreement (Aug 21, 2012)

Filed August 21, 2012For Securities:NSC

Summary

Norfolk Southern Corporation (NSC) filed an 8-K on August 21, 2012, to report the issuance of $600 million aggregate principal amount of 2.903% Notes due 2023. These "New Notes" were issued in exchange for existing outstanding debt securities as part of the company's previously announced exchange offers. The issuance of these notes represents a significant financing activity for Norfolk Southern, allowing them to restructure their outstanding debt at a favorable interest rate. The company has also entered into a Registration Rights Agreement to ensure that the newly issued notes can be registered with the SEC, enabling their future exchange for freely tradable securities. This move suggests a strategic effort by Norfolk Southern to manage its debt obligations efficiently and maintain financial flexibility.

Key Highlights

  • 1Issuance of $600 million in 2.903% Notes due 2023 by Norfolk Southern.
  • 2The New Notes were issued in exchange for specified series of the Registrant’s outstanding debt securities.
  • 3This issuance is part of the expiration of the early exchange date for previously announced exchange offers.
  • 4The New Notes are governed by an Indenture dated August 20, 2012, with U.S. Bank Trust National Association as trustee.
  • 5Norfolk Southern has the option to redeem the New Notes, with specific redemption price calculations based on the proximity to the maturity date.
  • 6A Registration Rights Agreement was entered into with dealer managers to facilitate the registration of securities in exchange for the New Notes.
  • 7The company is committed to filing an exchange offer registration statement within 180 days and having it declared effective within 270 days of the final settlement date.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report Norfolk Southern Corporation's entry into a material definitive agreement related to the issuance of $600 million in new debt securities (2.903% Notes due 2023) and the creation of a direct financial obligation.

The New Notes have a principal amount of $600 million, bear an interest rate of 2.903% per annum, and mature in 2023. Interest will be paid semiannually. The company has the option to redeem these notes under specific conditions and pricing mechanisms.

The New Notes were issued in exchange for specified series of the company's outstanding debt securities. This was done in connection with the expiration of the early exchange date for previously announced exchange offers, indicating a debt restructuring or refinancing effort.

The Registration Rights Agreement obligates Norfolk Southern to file an exchange offer registration statement with the SEC. This allows the company to eventually exchange the New Notes for registered securities, which would likely be more liquid and easier to trade in the public market.