Chicago, July 21 – CSX Corp. priced $2 billion of notes in three parts on Thursday, including two new series and one add-on to a previous issue (Baa1/BBB+), according to an FWP filed with the Securities and Exchange Commission.
The new notes included $950 million of notes due 2032 and $900 million of notes due 2052.
The $950 million of 4.1% notes due 2032 priced at 99.938 to yield 4.108%, or with a spread of 120 basis points over Treasuries.
The $900 million of new notes due 2052 priced with a 4.5% coupon at 99.351 to yield 4.54%. The spread came at 145 bps to the relevant benchmark Treasury.
The reopening priced as $150 million of 4.65% notes due 2068. The add-on was sold at 95.63 to yield 4.89%, or at a spread of 180 bps over Treasuries.
The add-on will be fungible with and become part of the same series as the previous $350 million of 2068 notes issued on Feb. 20, 2018.
The 2032 and 2052 notes feature make-whole calls followed by a par call. The premium for the 2032 notes is Treasuries plus 20 bps, until three months before the maturity date. The premium for the 2052 notes is Treasuries plus 25 bps, until six months before the maturity date.
The 2068 notes are callable at a make-whole price of Treasuries plus 25 bps up until six months before the maturity date, at which point they will be callable at par.
Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and UBS Securities LLC are the bookrunners.
Proceeds will be used for general corporate purposes, which may include debt repayments, repurchases of common stock, capital investment and working capital requirements.
Based in Jacksonville, Fla., CSX is a transportation company that provides rail-based freight transportation services including traditional rail service, transport of intermodal containers and trailers, as well as other transportation services such as rail-to-truck transfers and bulk commodity operations.
| Issuer: | CSX Corp.
|
| Amount: | $2 billion
|
| Issue: | Notes
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| Bookrunners: | Barclays, BofA Securities, Inc., 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
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| Co-managers: | PNC Capital Markets LLC and Siebert Williams Shank & Co., LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | Hunton Andrews Kurth LLP and Davis Polk & Wardwell LLP
|
| Counsel to underwriters: | Shearman & Sterling LLP
|
| Trade date: | July 21
|
| Settlement date: | July 28
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
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| Distribution: | SEC registered
|
|
|
| 2032 notes
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| Amount: | $950 million
|
| Maturity: | Nov. 15, 2032
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| Coupon: | 4.1%
|
| Price: | 99.938
|
| Yield: | 4.108%
|
| Spread: | Treasuries plus 120 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps until three months before the maturity date; thereafter at par
|
| Cusip: | 126408HU0
|
|
|
| 2052 notes
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| Amount: | $900 million
|
| Maturity: | Nov. 15, 2052
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| Coupon: | 4.5%
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| Price: | 99.351
|
| Yield: | 4.54%
|
| Spread: | Treasuries plus 145 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps until six months before the maturity date; thereafter at par
|
| Cusip: | 126408HV8
|
|
|
| Add-on
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| Amount: | $150 million
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| Maturity: | March 1, 2068
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| Coupon: | 4.65%
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| Price: | 95.63
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| Yield: | 4.89%
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| Spread: | Treasuries plus 180 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps until six months before the maturity date; thereafter at par
|
| Cusip: | 126408HL0
|
| Previous issue: | Fungible with $350 million of notes issued on Feb. 20, 2018
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