CSX offers new notes, cash in exchange for $660 million of notes

By Angela McDaniels

Tacoma, Wash., Feb. 22 - CSX Corp. has begun private offers to issue new 6.22% notes due 2040 and cash in exchange for five series of its notes, according to a company news release.

Eligible holders of the company's 7.45% notes due 2038, 7.95% debentures due 2027 and 8.625% debentures due 2022 can exchange any and all of their notes, which have first priority.

Eligible holders of the company's 8.1% debentures due 2022 and 7.9% debentures due 2017 can exchange a total principal amount of their notes equal to $660 million less the total principal amount of first-priority notes exchanged.

The exchange offers are subject to conditions that include the requirement that CSX receive valid tenders for at least $400 million principal amount of notes.

Eligible holders who tender by 5 p.m. ET on March 5 will receive an early exchange premium.

The exchange offers will expire at 11:59 p.m. ET on March 19.

The exchange offers are only being made to holders who are "qualified institutional buyers" as defined in Rule 144A under the Securities Act of 1933 or who are not "U.S. persons" as defined under Regulation S under the Securities Act.

Documents relating to the exchange offers will only be distributed to noteholders who complete and return a letter of eligibility. Copies of the eligibility letter are available through D.F. King & Co., Inc. (800 714-3312), the information agent for the exchange offers.

CSX is a Jacksonville, Fla.-based railroad and transportation company.

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