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Rail News Home Financials

8/24/2004



Rail News: Financials

CSXT, NS to exchange about $774 million worth of Conrail's debt securities



Today, Consolidated Rail Corp. (Conrail), CSX Transportation and Norfolk Southern Railway announced results of their offer to exchange new unsecured debt securities of CSXT and NS, and cash for existing unsecured debt securities of Conrail. CSXT and NS accepted about $774 million in aggregate principal amount — or about 97 percent of Conrail's unsecured debt securities — for an exchange.

The exchange offer — which expired yesterday — is part of CSXT's and NS' plan to restructure Conrail's debt per a joint petition filed by the railroads with the Surface Transportation Board in June 2003.

CSXT and NS will issue new debt securities with aggregate principal amounts in proportion to their 42 percent and 58 percent Conrail ownership stakes, respectively. For CSXT, the amounts are $225 million in aggregate principal for 9.75 percent notes due June 15, 2020, and $99.9 million for 7.87 percent notes due May 15, 2043; for NS, the amounts are $310.8 million in aggregate principal for 9.75 percent notes due June 15, 2020, and $138 million for 7.87 percent notes due May 15, 2043.

Conrail will pay an aggregate cash payment of about $13.3 million for the accepted unsecured debt securities.


Contact Progressive Railroading editorial staff.

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