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Rail News: Financials

CN secures terms for $800 million debt offering


On July 9, Canadian National Railway Co. plans to close financing on an $800 million debt offering comprising $300 million in 4.25 percent notes due in 2009 and $500 million in 6.25 percent debentures due in 2034.

The Class I will use estimated net proceeds of $790 million to pay off some costs tied to its May acquisition of Great Lakes Transportation L.L.C. for $380 million and recent "BC Rail Investment Partnership," under which CN will pay the province of British Columbia $768 million in cash to acquire BC Rail Ltd.'s outstanding shares and the right to operate over the regional's roadbed under a long-term lease. The BC Rail deal is expected to close in mid-July.

CN will complete the debt offering in the United States under a shelf-registration statement filed in October 2003 for up to $1 billion in debt securities. Citigroup and JPMorgan are the offering's lead managers; Banc of America Securities L.L.C., Harris Nesbitt, Scotia Capital, BNP PARIBAS, Banc One Capital Markets Inc., RBC Capital Markets and Wachovia Securities will serve as managers.

Contact Progressive Railroading editorial staff.

More News from 7/7/2004