Canadian National Railway begins tender offer for 4.25% notes of 2009

By Angela McDaniels

Tacoma, Wash., June 29 - Canadian National Railway Co. subsidiary CNLX Canada Inc. has begun a tender offer and consent solicitation for Canadian National's $300 million principal amount of 4.25% notes due Aug. 1, 2009, according to a company news release.

Holders who tender are required to consent to proposed amendments to the indenture governing the notes.

The company said that none of the proposed amendments will affect the terms of the notes held by non-tendering holders.

The tender offer will expire at 5 p.m. ET on July 27.

The company is offering par plus accrued interest up to but excluding the settlement date, which is expected to be July 28.

In addition, holders who tender by 5 p.m. ET on July 10 will receive a consent payment equal to $2.50 per $1,000 principal amount of notes.

The tender offer and amendment to the indenture are conditioned on the receipt of two-thirds consent.

Citigroup Global Markets Inc. (800 558-3745) is the dealer manager, and Global Bondholder Services Corp. (866 294-2200 or 212 430-3774) is the information agent.

The railway transportation company is based in Montreal.

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