By Cristal Cody
Tupelo, Miss., Nov. 7 – CSX Corp. priced $1 billion of senior notes (Baa1/BBB+) in two tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $350 million of 4.25% long 10-year notes at 99.641 to yield 4.294%. The notes priced with a spread of Treasuries plus 108 basis points.
CSX placed $650 million of 4.75% 30-year notes at 99.068 to yield 4.809% and a spread of 138 bps over Treasuries.
Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and UBS Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes, which may include repurchases of common stock, capital investments, working capital requirements, productivity improvements and other cost reductions at CSX’s major transportation units.
The transportation company is based in Jacksonville, Fla.
| Issuer: | CSX Corp.
|
| Amount: | $1 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and UBS Securities LLC
|
| Senior co-managers: | Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Mizuho Securities USA LLC
|
| Co-managers: | MUFG, PNC Capital Markets LLC and Williams Capital Group, LP
|
| Trade date: | Nov. 7
|
| Settlement date: | Nov. 15
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $350 million
|
| Maturity: | March 15, 2029
|
| Coupon: | 4.25%
|
| Price: | 99.641
|
| Yield: | 4.294%
|
| Spread: | Treasuries plus 108 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps; par call within three months prior to maturity
|
|
|
| 30-year notes
|
| Amount: | $650 million
|
| Maturity: | Nov. 15, 2048
|
| Coupon: | 4.75%
|
| Price: | 99.068
|
| Yield: | 4.809%
|
| Spread: | Treasuries plus 138 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps; par call within six months prior to maturity
|
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