Canadian National Railway Company said it will use the proceeds for general corporate purposes, including the redemption and refinancing of outstanding debt, share repurchases, acquisitions, and other business opportunities.
Canadian National Railway Company has filed statements with the relevant regulatory bodies in Canadian and the United States to issue up to $6 billion Canadian (U.S. $4.24 billion) of debt securities over the next 25 months, the company said in a statement.
Debt securities, also known as fixed-income securities, are financial instruments that can be bought or sold between two parties, similar to a stock, but include basic predefined terms like the amount borrowed, interest rate and maturity date.
In theory, debt securities are safer investments than stock or equity securities because they include a principal amount to be returned to the lender (i.e. the buyer of the security) at the agreed upon maturity date.
The company filed a shelf prospectus with Canadian securities regulators and a registration statement with the Securities and Exchange Commission for the offering.
“A registration statement relating to these securities has been filed with the SEC but has not yet become effective,” the Montreal-based Class I railway noted. “These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.”
CN said it will use the proceeds for general corporate purposes, including the redemption and refinancing of outstanding debt, share repurchases, acquisitions, and other business opportunities.
CN to issue $4.2b in debt securities
