By Andrea Heisinger
New York, May 20 - CSX Corp. sold $600 million of senior notes (Baa3/BBB) in two tranches Friday, including a reopening of existing debt, according to an FWP filing with the Securities and Exchange Commission.
The $350 million of new 4.25% 10-year notes sold at 99.499 to yield 4.312% with a spread of Treasuries plus 115 basis points. They sold at the tight end of guidance in the 120 bps area.
The notes have a make-whole call at 20 bps over Treasuries until three months prior to maturity and are then callable at par.
A second part was a reopening of 5.5% notes due 2041 to add $250 million. The notes were priced at 99.326 to yield 5.546% with a spread of Treasuries plus 125 bps. These notes were priced tight to talk in the 130 bps area.
The tranche is callable at a make-whole of 25 bps over Treasuries until six months prior to maturity and after that date at par.
Total issuance for the 2041 tranche is $550 million, including $300 million sold on Oct. 18, 2010 at 162.5 bps over Treasuries.
Both tranches feature a change-of-control put at 101%.
Bookrunners were Credit Suisse Securities (USA) LLC and UBS Securities LLC.
Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. Inc. were the senior co-managers.
Co-managers were Mitsubishi UFJ Securities (USA), Inc., Mizuho Securities USA Inc. and Scotia Capital (USA) Inc.
Proceeds are going to general corporate purposes, including debt repayment, common stock repurchases, capital expenditures, working capital, improvements in productivity and cost reductions.
The rail transportation company is based in Jacksonville, Fla.
| Issuer: | CSX Corp.
|
| Issue: | Senior notes
|
| Amount: | $600 million
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, UBS Securities LLC
|
| Senior co-managers: | Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc.
|
| Co-managers: | Mitsubishi UFJ Securities (USA), Inc., Mizuho Securities USA Inc., Scotia Capital (USA) Inc.
|
| Change-of-control put: | 101%
|
| Trade date: | May 20
|
| Settlement date: | May 25
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
|
|
| 10-year notes
|
| Amount: | $350 million
|
| Maturity: | June 1, 2021
|
| Coupon: | 4.25%
|
| Price: | 99.499
|
| Yield: | 4.312%
|
| Spread: | Treasuries plus 115 bps
|
| Call: | Make-whole at Treasuries plus 20 bps until three months before maturity, after at par
|
| Price talk: | 120 bps area
|
|
|
| Notes due 2041
|
| Amount: | $250 million
|
| Maturity: | April 15, 2041
|
| Coupon: | 5.5%
|
| Price: | 99.326
|
| Yield: | 5.546%
|
| Spread: | Treasuries plus 125 bps
|
| Call: | Make-whole at Treasuries plus 25 bps until six months prior to maturity, after at par
|
| Price talk: | 130 bps area
|
| Total issuance: | $550 million, including $300 million sold Oct. 18, 2010 at 162.5 bps
|
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