CSX Corporation Announces Offers to Exchange Outstanding Debt Securities for New Notes and Cash
February 22 2010 - 8:37AM
PR Newswire (US)
JACKSONVILLE, Fla., Feb. 22 /PRNewswire-FirstCall/ -- CSX
Corporation (NYSE: CSX; and "CSX") today announced the commencement
of private offers to exchange certain of its outstanding debt
securities (the "Existing Notes") for a new series of 6.220% Notes
due 2040 (the "New Notes") and cash (the "Exchange Offers"). The
Exchange Offers are being conducted upon the terms and subject to
the conditions set forth in the offering memorandum dated February
22, 2010 and the related letter of transmittal. The Exchange Offers
are only made, and copies of the offering documents will only be
made available, to a holder of the Existing Notes who has certified
its status as (1) a "qualified institutional buyer" as defined in
Rule 144A under the Securities Act of 1933 (the "Securities Act"),
or (2) a person who is not a "U.S. person" as defined under
Regulation S under the Securities Act (each, an "Eligible Holder").
CSX is offering to Eligible Holders of its 7.450% Notes due 2038,
7.950% Debentures due 2027 and 8.625% Debentures due 2022
(collectively, the "First Priority Existing Notes"), the
opportunity to exchange any and all of their First Priority
Existing Notes for New Notes and cash. In addition, CSX is offering
to Eligible Holders of its 8.100% Debentures due 2022 and 7.900%
Debentures due 2017 (collectively, the "Second Priority Existing
Notes"), the opportunity to exchange up to an aggregate principal
amount of their Second Priority Existing Notes equal to (i)
$660,000,000 less (ii) the aggregate principal amount of First
Priority Existing Notes exchanged pursuant to the Exchange Offers
for New Notes and cash. The Exchange Offers are subject to certain
conditions, including the requirement that CSX receive valid
tenders, not validly withdrawn, of at least $400,000,000 aggregate
principal amount of Existing Notes. Eligible Holders of each series
of Existing Notes who tender their Existing Notes at or before 5:00
p.m. New York City time on March 5, 2010, subject to extension (the
"Early Exchange Date"), will receive an additional early exchange
premium. The Exchange Offers will expire at 11:59 p.m., New York
City time, on March 19, 2010, unless extended or terminated.
Tenders of Existing Notes in the Exchange Offers may be validly
withdrawn at any time prior to the Early Exchange Date, but will
thereafter be irrevocable, except in certain limited circumstances
where additional withdrawal rights are required by law. Tenders
submitted in the Exchange Offers after the Early Exchange Date will
be irrevocable except in the limited circumstances where additional
withdrawal rights are required by law. The New Notes have not been
registered under the Securities Act or any state securities laws.
Therefore, the New Notes may not be offered or sold in the United
States absent registration or an applicable exemption from the
registration requirements of the Securities Act and any applicable
state securities laws. This press release is not an offer to sell
or a solicitation of an offer to buy any security. The Exchange
Offers are being made solely by the offering memorandum and related
letter of transmittal and only to such persons and in such
jurisdictions as is permitted under applicable law. Documents
relating to the Exchange Offers will only be distributed to holders
of Existing Notes who complete and return a letter of eligibility
confirming that they are within the category of eligible investors
for the Exchange Offers. Holders of Existing Notes who desire a
copy of the eligibility letter may contact D.F. King & Co.,
Inc., the information agent for the Exchange Offers, at (800)
714-3312. Forward-looking statements This information and other
statements by the company may contain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
with respect to, among other items: projections and estimates of
earnings, revenues, cost-savings, expenses, or other financial
items; statements of management's plans, strategies and objectives
for future operation, and management's expectations as to future
performance and operations and the time by which objectives will be
achieved; statements concerning proposed new products and services;
and statements regarding future economic, industry or market
conditions or performance. Forward-looking statements are typically
identified by words or phrases such as "believe," "expect,"
"anticipate," "project," "estimate," "preliminary" and similar
expressions. Forward-looking statements speak only as of the date
they are made, and the company undertakes no obligation to update
or revise any forward-looking statement. If the company does update
any forward-looking statement, no inference should be drawn that
the company will make additional updates with respect to that
statement or any other forward-looking statements. Forward-looking
statements are subject to a number of risks and uncertainties, and
actual performance or results could differ materially from that
anticipated by any forward-looking statements. Factors that may
cause actual results to differ materially from those contemplated
by any forward-looking statements include, among others; (i) the
company's success in implementing its financial and operational
initiatives; (ii) changes in domestic or international economic or
business conditions, including those affecting the rail industry
(such as the impact of industry competition, conditions,
performance and consolidation); (iii) legislative or regulatory
changes; (iv) the inherent business risks associated with safety
and security; (v) the outcome of claims and litigation involving or
affecting the company; and (vi) natural events such as severe
weather conditions or pandemic health crises. Other important
assumptions and factors that could cause actual results to differ
materially from those in the forward-looking statements are
specified in the company's SEC reports, accessible on the SEC's
website at http://www.sec.gov/. DATASOURCE: CSX Corporation
CONTACT: David Baggs, Investor Relations of CSX Corporation,
+1-904-359-4812 Web Site: http://www.csx.com/
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