Canadian National makes $800M debt offering

Canadian National makes $800M debt offering

Canadian National announced the terms of a US$800 million debt offering composed of $300 million 4.25 percent notes due 2009, and $500 million 6.25 percent debentures due 2034.

The Montreal-based company, Canada's largest rail operator, expects to close the financing on July 9.

CN plans to use estimated net proceeds of $790 million to pay a portion of the cost of its recent acquisition of the railroad and marine holdings of Great Lakes Transportation LLC, and to finance a portion of the cost of its acquisition of BC Rail Ltd.

CN completed the acquisition of GLT in May 2004. The BC Rail transaction received regulatory clearance on July 2, and is expected to close by the middle of this month.