Summary
Norfolk Southern Corporation (NSC) filed an 8-K on May 24, 2017, announcing the entry into a material definitive agreement for the issuance and sale of $300 million in Senior Notes due 2027. The offering, priced at 99.847% of the principal amount, is expected to generate net proceeds of approximately $297.1 million after deducting underwriting discounts and expenses. The notes carry a coupon rate of 3.150%. This move indicates the company is actively managing its capital structure and seeking to raise funds. Investors should note that the proceeds are intended to support the company's operations and strategic initiatives. The offering was made under the company's existing effective Registration Statement on Form S-3, with Citigroup Global Markets Inc. and Wells Fargo Securities, LLC acting as representatives for the underwriters. The closing of the offering is anticipated around May 31, 2017, subject to customary conditions.
Key Highlights
- 1Norfolk Southern Corporation is issuing $300 million in 3.150% Senior Notes due 2027.
- 2The offering is priced at 99.847% of the aggregate principal amount.
- 3Net proceeds are estimated to be approximately $297.1 million after fees and expenses.
- 4The company entered into an Underwriting Agreement with Citigroup Global Markets Inc. and Wells Fargo Securities, LLC.
- 5The notes are being offered under the company's effective Registration Statement on Form S-3.
- 6The transaction is expected to close on or about May 31, 2017.
- 7This action signifies the company's ongoing capital raising activities.