MONTREAL, Feb. 18 /CNW Telbec/ - CN (TSX: CNR) (NYSE: CNI) today announced
a public debt offering of US$550 million 5.55 per cent Notes due 2019. CN
expects to close the financing on Feb. 25, 2009.
CN plans to use the estimated net proceeds of US$540 million from the
offering 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 the financing of CN's
recent acquisitions of the principal lines of the Elgin, Joliet & Eastern
Railway Company, and three railway subsidiaries and a rail-freight ferry
operation of the Quebec Railway Corp.
The debt offering is being made in the United States under the shelf
registration statement CN filed on Dec. 17, 2007. Book-running 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.
A copy of the prospectus for the offering to which this communication
relates may be obtained by contacting Citigroup Global Markets Inc., Brooklyn
Army Terminal, 140 58th Street, 8th floor, Brooklyn, N.Y., 11220, toll free:
1-877-858-5407; or J.P. Morgan Securities Inc., 270 Park Avenue, New York,
N.Y., 10017, collect: 1-212-834-4533.
This news release contains forward-looking statements. Such
forward-looking statements include, without limitation, statements relating to
a debt offering, the anticipated closing and the use of net proceeds of such
offering. CN cautions that, by their nature, forward-looking statements
involve risk, uncertainties and assumptions. The Company cautions that these
assumptions may not materialize. Reference should be made to CN's most recent
Form 40-F filed with the United States Securities and Exchange Commission, its
Annual Information Form filed with the Canadian securities regulators, and its
2008 Annual Consolidated Financial Statements and Notes thereto and related
Management's Discussion and Analysis, for a summary of major risks.
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 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.
CN - Canadian National Railway Company and its operating railway
subsidiaries - spans Canada and mid-America, from the Atlantic and Pacific
oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert,
B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the key
metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth,
Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul, Memphis, St.
Louis, and Jackson, Miss., with connections to all points in North America.
For further information:
For further information: Media: Mark Hallman, Director, Communications,
Media, (905) 669-3384; Investors: Robert Noorigian, Vice-President, Investor
Relations, (514) 399-0052