(NS issued the following news release on September 10.)
NORFOLK, VA. — Norfolk Southern Corporation (NYSE: NSC) announced today that the total exchange price to be paid according to the terms of its exchange offer for up to $400 million of its outstanding 7.350% Notes due 2007 validly tendered and not withdrawn by 5 p.m., New York City time, on August 27, 2004, the early participation date, is $1,108.81 per $1,000 principal amount of outstanding notes.
Holders of outstanding notes who tendered after the early participation date will receive the total exchange price less the early participation payment of $5.00, or $1,103.81 per $1,000 principal amount of notes. The total exchange price for the outstanding notes was determined using the yield on the 3.125% U.S. Treasury Notes due May 15, 2007 as of 2 p.m., New York City time, on September 10, 2004 (2.709%), plus 0.35%.Norfolk Southern also announced that the interest rate on the new notes due 2014, issued in exchange for the tendered notes, will be 5.257%. The interest rate on the new notes was determined using the yield on the 4.25% U.S. Treasury Notes due August 15, 2014 as of 2 p.m., New York City time, on September 10, 2004 (4.157%), plus 1.10%.
To date, $483.6 million aggregate principal amount of outstanding notes have been tendered. The exchange offer expires at 5 p.m., New York City time, on September 14, 2004, unless extended.
Questions concerning the terms of the tender offer may be directed to the dealer manager, Merrill Lynch & Co., toll-free at (888) 654-8637 or by collect call at (212) 449-4914. Copies of the Prospectus may be obtained by calling the information agent, Global Bondholder Services Corporation, toll-free at (866) 470-3800 or at (212) 430-3774 (banks and brokerage firms).
Norfolk Southern Corporation is one of the nation’s premier transportation companies. Its Norfolk Southern Railway Company subsidiary operates 21,500 route miles in 22 states, the District of Columbia and Ontario, Canada, serving every major container port in the eastern United States and providing superior connections to western rail carriers. Norfolk Southern operates an extensive intermodal network and is the nation’s largest rail carrier of automotive parts and finished vehicles.