By Andrea Heisinger
Omaha, Dec. 10 - CSX Transportation, Inc. priced $380.82 million in 6.251% secured equipment notes due Jan. 15, 2023 on Monday to yield 210 basis points more than Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The notes (A2/A-) priced at par to yield 6.251%. They have a make-whole call at Treasuries plus 35 bps.
Bookrunners were Citigroup Global Markets Inc. and Morgan Stanley & Co. Inc.
Proceeds will be used for general corporate purposes including the repurchase of common stock, capital expenditures, working capital, improvements in productivity and other cost reductions at the company's major transportation units.
The subsidiary of CSX Corp. is based in Jacksonville, Fla.
| Issuer: | CSX Transportation, Inc.
|
| Issue: | Secured equipment notes
|
| Amount: | $380,821,000
|
| Maturity: | Jan. 15, 2023
|
| Bookrunners: | Citigroup Global Markets Inc., Morgan Stanley & Co. Inc.
|
| Coupon: | 6.251%
|
| Price: | Par
|
| Yield: | 6.251%
|
| Spread: | Treasuries plus 210 bps
|
| Call: | Make-whole at Treasuries plus 35 bps, at par
|
| Trade date: | Dec. 10
|
| Settlement date: | Dec. 13
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A-
|
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