(Canadian National Railway issued the following news release on May 23.)
MONTREAL, QUEBEC — CN today announced the terms of a US$700 million debt offering of US$250 million 5.80 per cent Notes due 2016, and US$450 million 6.20 per cent Debentures due 2036. CN expects to close the financing on May 31, 2006.
CN plans to use the estimated net proceeds of US$692 million to reduce its accounts receivable securitization program and repay a portion of its outstanding commercial paper.
The debt offering is being made in the United States under the shelf registration statement CN filed on May 9, 2006 for up to US$1.5 billion of debt securities.
Lead managers of the debt offering are Citigroup Corporate and Investment Banking and J.P. Morgan Securities Inc. Other managers are Banc of America Securities LLC, Harris Nesbitt, Scotia Capital, BNP PARIBAS, RBC Capital Markets, and Wachovia Securities.