CN announces $550 million debt offering

Written by William C. Vantuono, Editor-in-Chief

CN has announced a public debt offering of US$550 million 5.55% notes due 2019. CN says it expects to close the financing on Feb. 25, 2009.

CN plans to use estimated net proceeds of US$540 million to repay a portion of its outstanding commercial paper and to reduce its accounts receivable securitization program. The indebtedness being repaid was incurred for general corporate purposes, including financing of CN’s acquisition of the Elgin, Joliet & Eastern Railway Company, and three railway subsidiaries and a rail-freight ferry operation of the Quebec Railway Corp.

Managers of the debt offering are Citigroup Global Markets Inc. and J.P. Morgan Securities Inc. Other managers are Banc of America Securities LLC, BMO Capital Markets, BNP Paribas Securities Corp., RBC Capital Markets, Scotia Capital (USA) Inc., and Wachovia Capital Markets, LLC.