Summary
Norfolk Southern Corporation (NSC) announced on August 13, 2013, the completion of a public offering of $500 million in aggregate principal amount of 4.800% Senior Notes due 2043. This issuance was made under the company's existing Automatic Shelf Registration Statement and utilized an Underwriting Agreement with several prominent financial institutions, including J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Morgan Stanley & Co. LLC. The Notes will bear interest at a rate of 4.800% per annum, paid semi-annually. The company has the option to redeem these notes, either in whole or in part, under specific conditions outlined in the Indenture. Redemption prior to six months before maturity involves a calculation based on present values of future payments, while redemption within six months of maturity is at 100% of the principal amount plus accrued interest.
Key Highlights
- 1Completion of a $500 million debt offering: Norfolk Southern successfully issued $500 million in aggregate principal amount of Senior Notes.
- 2Maturity date of 2043: The newly issued notes have a long-term maturity of 30 years.
- 3Coupon rate of 4.800%: The notes carry a fixed interest rate of 4.800% per annum.
- 4Semi-annual interest payments: Investors will receive interest payments twice a year.
- 5Redemption options available: The company retains the flexibility to redeem the notes under specified terms and conditions.
- 6Underwritten by major financial institutions: The offering was managed by J.P. Morgan Securities, Merrill Lynch, and Morgan Stanley.
- 7Issued under existing shelf registration: The offering was facilitated by a previously filed Form S-3 Automatic Shelf Registration Statement.