(The Canadian Press distributed the following article on July 6.)
MONTREAL — Canadian National announced plans for an $800 million US debt offering to pay for some of its recent acquisition of Great Lakes Transportation and to finance a portion of the cost of its acquisition of B.C. Rail.
The offer is composed of $300 million US in notes offering 4.25 per cent annual interest that mature 2009, and $500 million US in debentures offering 6.25 per cent interest maturing in 2034.
CN expects to close the financing on Friday.
The company plans to use the estimated net proceeds of $790 million US to pay a portion of the cost of its recent acquisition of the railroad and marine holdings of Great Lakes Transportation LLC (TSX:GLT), and to finance a portion of the cost of its acquisition of BC Rail Ltd., the BC Rail Partnership and the right to operate over BC Rail’s railbed under a long-term lease.
CN bought GLT in May and the BC Rail transaction is expected to close by the middle of this month.