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Corporate finance: CN launches $400 million debt offering

On March 5, Canadian National Railway Co. announced terms of a $400 million debt offering of 4.4 percent notes due 2013.

The railroad plans to use the estimated net proceeds — $396 million — to repay $150 million of 6.625 percent 10-year notes that CN issued, and $100 million of 6.75 percent 10-year notes issued by wholly owned subsidiary Illinois Central Railroad Co. Both notes are due May 15. The excess will be used to repay outstanding CN-issued commercial paper.

Banc of America Securities L.L.C. and Salomon Smith Barney serve as the offering's lead managers. Other managers include JPMorgan, Banc One Capital Markets Inc., BNP PARIBAS, Fleet Securities Inc., Scotia Capital and Wachovia Securities.

CN expects to close the offering March 10.

Contact Progressive Railroading editorial staff.

More News from 3/6/2003