By Andrea Heisinger
New York, Oct. 21 - CSX Transportation Inc. priced an upsized $350.538 million 8.375% six-year secured equipment notes Tuesday to yield Treasuries plus 575.2 basis points, a market source said.
The notes (A2/A-/) priced at par to yield 8.375% with a make-whole redemption option of Treasuries plus 50 bps.
The notes priced within price talk that was in the 8.5% area.
Bookrunners were Citigroup Global Markets Inc., Credit Suisse Securities and J.P. Morgan Securities Inc.
Co-managers were Barclays Capital, Deutsche Bank Securities, Morgan Stanley & Co., UBS Investment Bank, Mitsubishi UFJ Securities, Mizuho Securities and Scotia Capital.
Proceeds will be used for general corporate purposes, including the repurchase of CSX Corp. common stock, the repayment of debt, for capital expenditures, for working capital, for improvements in productivity and for other cost reductions at CSX major transportation units.
The unit of transportation company CSX Corp. is based in Jacksonville, Fla.
| Issuer: | CSX Transportation Inc.
|
| Issue: | Secured equipment notes
|
| Amount: | $350.538 million, upsized from $250.438 million
|
| Maturity: | Oct. 15, 2014
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities, J.P. Morgan Securities Inc.
|
| Co-managers: | Barclays Capital, Deutsche Bank Securities, Morgan Stanley & Co., UBS Investment Bank, Mitsubishi UFJ Securities, Mizuho Securities, Scotia Capital
|
| Coupon: | 8.375%
|
| Price: | Par
|
| Yield: | 8.375%
|
| Spread: | Treasuries plus 575.2 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Trade date: | Oct. 21
|
| Settlement date: | Oct. 24
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A-
|
| Price talk: | 8.5% area
|
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