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Rail News Home Financials

7/7/2004



Rail News: Financials

CN secures terms for $800 million debt offering


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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.


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