CN Announces US$750 Million Debt Offering
CN (TSX: CNR) (NYSE: CNI) has announced a public debt offering of US$750 million in 4.375% Notes due 2034. The offering is expected to close on September 18, 2024, subject to customary conditions. The net proceeds will be used for general corporate purposes, potentially including debt redemption, refinancing, share repurchases, acquisitions, and other business opportunities.
The debt offering is being made in the United States under a shelf registration statement dated April 2, 2024. Several major financial institutions are involved as joint book-running managers, senior co-managers, and co-managers. Interested parties can obtain a copy of the prospectus supplement and accompanying prospectus from the specified contacts.
CN (TSX: CNR) (NYSE: CNI) ha annunciato un emissione di debito pubblico di 750 milioni di dollari USA in note al 4,375% con scadenza nel 2034. Si prevede che l'emissione si chiuda il 18 settembre 2024, soggetta a condizioni di legge consuete. I proventi netti saranno utilizzati per finalità aziendali generali, che potrebbero includere il rimborso del debito, il rifinanziamento, il riacquisto di azioni, acquisizioni e altre opportunità commerciali.
L'emissione di debito viene effettuata negli Stati Uniti sotto una dichiarazione di registrazione a scaffale datata 2 aprile 2024. Diverse importanti istituzioni finanziarie sono coinvolte come co-manager principali, co-manager senior e co-manager. Le parti interessate possono ottenere una copia del prospetto supplementare e del prospetto associato dai contatti specificati.
CN (TSX: CNR) (NYSE: CNI) ha anunciado una oferta de deuda pública de 750 millones de dólares estadounidenses en Notas al 4.375% con vencimiento en 2034. Se espera que la oferta se cierre el 18 de septiembre de 2024, sujeta a condiciones habituales. Los ingresos netos se utilizarán para fines corporativos generales, que pueden incluir la redención de deuda, refinanciación, recompra de acciones, adquisiciones y otras oportunidades comerciales.
La oferta de deuda se realiza en los Estados Unidos bajo una declaración de registro a estante fechada el 2 de abril de 2024. Varias instituciones financieras importantes están involucradas como co-administradores principales, co-administradores senior y co-administradores. Las partes interesadas pueden obtener una copia del prospecto suplementario y el prospecto correspondiente de los contactos especificados.
CN (TSX: CNR) (NYSE: CNI)는 7억 5천만 달러의 공공 채무 발행을 4.375% 노트 형태로 2034년 만기를 두고 발표했습니다. 본 발행은 2024년 9월 18일에 마감될 예정이며, 통상적인 조건에 따라 진행됩니다. 순수익은 일반 기업 용도에 사용되며, 여기에는 채무 상환, 재융자, 자사주 매입, 인수 및 기타 비즈니스 기회가 포함될 수 있습니다.
채무 발행은 2024년 4월 2일자 선반 등록 문서에 따라 미국에서 이루어집니다. 여러 주요 금융 기관들이 공동 주관 관리자, 선임 공동 관리자 및 공동 관리자 역할을 하고 있습니다. 관심 있는 당사자들은 지정된 연락처를 통해 보충 설명서와 관련된 설명서 사본을 받을 수 있습니다.
CN (TSX: CNR) (NYSE: CNI) a annoncé une offre de dette publique de 750 millions de dollars américains en Obligations à 4,375% venant à échéance en 2034. On s'attend à ce que l'offre se clôture le 18 septembre 2024, sous réserve de conditions normales. Le produit net sera utilisé à des fins d'entreprise générales, pouvant inclure le remboursement de dettes, le refinancement, le rachat d'actions, des acquisitions et d'autres opportunités commerciales.
L'offre de dette est réalisée aux États-Unis sous une déclaration d'enregistrement sur étagère datée du 2 avril 2024. Plusieurs grandes institutions financières sont impliquées en tant que co-responsables de la librairie, co-responsables seniors et co-responsables. Les parties intéressées peuvent obtenir une copie du prospectus complémentaire et du prospectus associé auprès des contacts spécifiés.
CN (TSX: CNR) (NYSE: CNI) hat ein Öffentliches Schuldenangebot in Höhe von 750 Millionen USD in 4,375%-Noten mit Fälligkeit im Jahr 2034 angekündigt. Die Angebotsabschlus ist für den 18. September 2024 vorgesehen, vorbehaltlich üblicher Bedingungen. Die Nettomittel werden für allgemeine Unternehmenszwecke verwendet, die möglicherweise die Tilgung von Schulden, Refinanzierung, Aktienrückkäufe,Übernahmen und andere Geschäftsmöglichkeiten umfassen.
Die Schuldenemission erfolgt in den Vereinigten Staaten gemäß einer am 2. April 2024 datierten Regalregistrierungserklärung. Mehrere große Finanzinstitute sind als gemeinsame Hauptbuchführer, Senior-Co-Manager und Co-Manager beteiligt. Interessierte Parteien können eine Kopie des Prospekts und des begleitenden Prospekts von den angegebenen Kontakten anfordern.
- Raising US$750 million through debt offering, providing additional capital for various corporate purposes
- Potential for strategic investments, acquisitions, and share repurchases with the raised funds
- Involvement of multiple reputable financial institutions in managing the debt offering
- Increase in long-term debt obligations with 4.375% Notes due in 2034
- Potential increase in interest expenses due to the new debt
Insights
CN's
The involvement of major financial institutions as book-running managers and co-managers suggests strong market confidence in CN's creditworthiness. This debt issuance could potentially improve CN's capital structure and provide financial flexibility for future growth initiatives. However, investors should monitor how this additional debt impacts CN's leverage ratios and interest coverage in the coming quarters.
CN's debt offering comes at a time when the transportation sector is navigating economic uncertainties. The
Investors should pay attention to how CN utilizes these funds. If used for share repurchases, it could signal management's belief that the stock is undervalued. Acquisitions, on the other hand, might indicate expansion plans or efforts to consolidate market position. The offering's success and pricing will also provide insights into market sentiment towards CN and the broader transportation sector.
MONTREAL, Sept. 16, 2024 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) today announced a public debt offering of US
CN plans to use the net proceeds from the offering for general corporate purposes, which may include the redemption and refinancing of outstanding indebtedness, share repurchases, acquisitions and other business opportunities.
The debt offering is being made in the United States under an effective shelf registration statement dated April 2, 2024.
The joint book-running managers of the debt offering are: BNP Paribas Securities Corp., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC and RBC Capital Markets, LLC. The senior co-managers of the debt offering are: BofA Securities, Inc., BMO Capital Markets Corp., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc. The co-managers of the debt offering are: CIBC World Markets Corp., Desjardins Securities Inc. and Morgan Stanley & Co. LLC.
A copy of the prospectus supplement and the accompanying prospectus for the offering may be obtained by contacting: BNP Paribas Securities Corp., 787 7th Avenue, New York, New York 10019, Telephone: 1-800-854-5674; J.P. Morgan Securities LLC, c/o Broadridge Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, Telephone: 1-212-834-4533; or Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000, Minneapolis, MN 55402 Attn: WFS Customer Service, Telephone: 1-800-645-3751, Email: wfscustomerservice@wellsfargo.com.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor will there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About CN
CN powers the economy by safely transporting more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year for its customers. With its nearly 20,000-mile rail network and related transportation services, CN connects Canada’s Eastern and Western coasts with the U.S. Midwest and the Gulf of Mexico, contributing to sustainable trade and the prosperity of the communities in which it operates since 1919.
Forward-Looking Statements
Certain statements included in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws, relating, but not limited to, statements relating to potential debt refinancing as well as with respect to the timing and completion of the proposed debt offering, which is subject to customary termination rights and closing conditions. By their nature, forward-looking statements involve risks, uncertainties and assumptions. CN cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward-looking statements may be identified by the use of terminology such as “believes”, “expects”, “anticipates”, “assumes”, “outlook”, “plans”, “targets” or other similar words.
Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors which may cause actual results, performance or achievements of CN to be materially different from the outlook or any future results, performance or achievements implied by such statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. Important risk factors that could affect the forward-looking statements in this news release include, but are not limited to, general economic and business conditions, including factors impacting global supply chains such as pandemics and geopolitical conflicts and tensions; industry competition; inflation, currency and interest rate fluctuations; changes in fuel prices; legislative and/or regulatory developments; compliance with environmental laws and regulations; actions by regulators; increases in maintenance and operating costs; security threats; reliance on technology and related cybersecurity risk; trade restrictions or other changes to international trade arrangements; transportation of hazardous materials; various events which could disrupt operations, including illegal blockades of rail networks, and natural events such as severe weather, droughts, fires, floods and earthquakes; climate change; labor negotiations and disruptions; environmental claims; uncertainties of investigations, proceedings and other types of claims and litigation; risks and liabilities arising from derailments; timing and completion of capital programs; the availability of and cost competitiveness of renewable fuels and the development of new locomotive propulsion technology; reputational risks; supplier concentration; pension funding requirements and volatility; and other risks detailed from time to time in reports filed by CN with securities regulators in Canada and the United States. Reference should also be made to Management’s Discussion and Analysis in CN’s annual and interim reports, Annual Information Form and Form 40-F, filed with Canadian and U.S. securities regulators and available on CN’s website, for a description of major risk factors relating to CN.
Forward-looking statements reflect information as of the date on which they are made. CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward-looking statement. Information contained on, or accessible through, our website is not incorporated by reference into this news release.
Contacts:
| Media | Investment Community |
| Jonathan Abecassis | Stacy Alderson |
| Director, Public Affairs and | Assistant Vice-President |
| Media Relations | Investor Relations |
| (438) 455-3692 media@cn.ca | (514) 399-0052 investor.relations@cn.ca |
FAQ
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