By Cristal Cody
Tupelo, Miss., Feb. 21 – CSX Corp. priced $1 billion of senior notes (Baa1/BBB+) in two tranches on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $600 million in an add-on to its 4.25% senior notes due March 15, 2029 at 102.904 to yield 3.891%, or a spread of Treasuries plus 120 basis points.
CSX originally sold $350 million of the notes on Nov. 7, 2018 at 99.641 to yield 4.294%, or Treasuries plus 108 bps. The total outstanding is now $950 million.
A new $400 million tranche of 4.5% 30-year notes priced at 99.655 to yield 4.521% and a spread of 148 bps over Treasuries.
Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
The transportation company is based in Jacksonville, Fla.
| Issuer: | CSX Corp.
|
| Amount: | $1 billion
|
| Description: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Senior co-managers: | Citigroup Global Markets Inc., Mizuho Securities USA LLC and UBS Securities LLC
|
| Co-managers: | MUFG, PNC Capital Markets LLC and Williams Capital Group, LP
|
| Trade date: | Feb. 21
|
| Settlement date: | Feb. 28
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
|
|
| Notes due 2029
|
| Amount: | $600 million reopening
|
| Maturity: | March 15, 2029
|
| Coupon: | 4.25%
|
| Price: | 102.904
|
| Yield: | 3.891%
|
| Spread: | Treasuries plus 120 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps; par call within three months prior to maturity
|
| Total outstanding: | $950 million, including $350 million of notes priced Nov. 7, 2018 at 99.641 to yield 4.294%, or Treasuries plus 108 bps
|
|
|
| 30-year notes
|
| Amount: | $400 million
|
| Maturity: | March 15, 2049
|
| Coupon: | 4.5%
|
| Price: | 99.655
|
| Yield: | 4.521%
|
| Spread: | Treasuries plus 148 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps; par call within six months prior to maturity
|
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