By Aleesia Forni
Virginia Beach, Oct. 15 – CSX Corp. was in Thursday’s market with a $600 million offering of 3.35% 10-year senior notes (Baa1/BBB+/) sold at a 135 basis points spread over Treasuries, according to a market source and an FWP filed with the Securities and Exchange Commission.
Pricing was at 99.763 to yield 3.378%.
The notes were guided in the Treasuries plus 140 bps area after being talked in the area of Treasuries plus 150 basis points.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the joint bookrunners.
Proceeds will be used for general corporate purposes, which may include repurchases of CSX’s common stock, capital investment, working capital, improvements in productivity, and other cost reductions at CSX’s major transportation units.
The transportation company is based in Jacksonville, Fla.
| Issuer: | CSX Corp.
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| Amount: | $600 million
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| Description: | Senior notes
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| Maturity: | Nov. 1, 2025
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| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
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| Senior co-managers: | Credit Suisse Securities (USA) LLC, Mizuho Securities USA Inc., UBS Securities LLC
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| Co-Managers: | MUFG, PNC Capital Markets LLC, Williams Capital Group, LP
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| Coupon: | 3.35%
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| Price: | 99.763
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| Yield: | 3.378%
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| Spread: | Treasuries plus 135 bps
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| Trade date: | Oct. 15
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| Settlement date: | Oct. 20
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| Ratings: | Moody’s: Baa1
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| Standard & Poor’s: BBB+
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| Price guidance: | Treasuries plus 140 bps area, tightened from Treasuries plus 150 bps area
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| Make-whole call: | Treasuries plus 20 bps prior to Aug. 1, 2025, then callable at par
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| Distribution: | SEC-registered
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