Conrail, CSXT and NSR Announce Closing of Exchange Offer, Unsecured and Secured Debt Consent Solicitations and Conrail's Restruc
30 August 2004 - 11:21PM
PR Newswire (US)
Conrail, CSXT and NSR Announce Closing of Exchange Offer, Unsecured
and Secured Debt Consent Solicitations and Conrail's Restructuring
WASHINGTON, Aug. 30 /PRNewswire-FirstCall/ -- Consolidated Rail
Corporation (Conrail), CSX Transportation, Inc. (CSXT) and Norfolk
Southern Railway Company (NSR) announced today that they have
closed both their previously announced offer to exchange new
unsecured debt securities of CSXT and NSR and cash for existing
unsecured debt securities of Conrail and their solicitation of
consents relating to the restructuring of Conrail's indebtedness.
The new unsecured debt securities were issued, and cash was paid,
to holders of Conrail's unsecured debt securities that had tendered
their debt securities, and provided their consent to the
transactions relating to the restructuring of Conrail's
indebtedness, on or prior to the expiration date of the exchange
offer. Cash was also paid to holders of Conrail's equipment trust
certificates and pass through trust certificates that provided
their consents to, among other things, the restructuring of
Conrail's indebtedness on or prior to the expiration of the secured
debt consent solicitation. The exchange offer and the unsecured and
secured debt consent solicitations were part of a series of
transactions relating to the restructuring of Conrail's
indebtedness and assets as described in the parties' joint petition
filed with the Surface Transportation Board on June 4, 2003. The
restructuring was completed on Friday, August 27, 2004. As a result
of the completion of the restructuring, the business, assets, and
operations of New York Central Lines LLC were consolidated into
CSXT and the business, assets, and operations of Pennsylvania Lines
LLC were consolidated into NSR. CSX Corporation (CSX), based in
Jacksonville, Fla., owns the largest rail network in the eastern
United States. CSXT and its 34,000 employees provide rail
transportation services over a 23,000 route-mile network in 23
states, the District of Columbia and two Canadian provinces. CSX
also provides intermodal and global container terminal operations
through other subsidiaries. Norfolk Southern Corp. (NSC) through
its NSR subsidiary operates 21,500 route miles in 22 states, the
District of Columbia and Ontario, Canada, serving every major
container port in the eastern United States and providing
connections to western rail carriers. NSC operates an extensive
intermodal network and is the nation's largest rail carrier of
automotive parts and finished vehicles. Conrail is a principal
freight railroad in the Northeastern United States, and is
indirectly owned 58% by NSC and 42% by CSX. This press release
contains forward-looking statements which speak only as of the date
they are made, and none of CSX, NSC, Conrail, or any of their
respective subsidiaries undertakes any obligation to update or
revise any forward-looking statement. If CSX, NSC or Conrail do
update any forward- looking statement, no inference should be drawn
that CSX, NSC or Conrail will make additional updates with respect
to that statement or any other forward- looking statements.
Forward-looking statements are subject to a number of risks and
uncertainties, and other factors which are, in some cases, beyond
the control of CSX, NSC and Conrail and could materially affect
actual results, performance or achievements. Factors that may cause
actual results to differ materially from those contemplated by
these forward-looking statements include, among others: (i) success
in implementing its financial and operational initiatives; (ii)
changes in domestic or international economic or business
conditions, including those affecting the rail industry (such as
the impact of industry competition, conditions, performance and
consolidation); (iii) legislative or regulatory changes; and (iv)
the outcome of claims and litigation involving or affecting a
company. Other important assumptions and factors that could cause
actual results to differ materially from those in the
forward-looking statements made by each of NSC and CSX are
specified elsewhere in NSC's and CSX's respective documents filed
with the SEC. Documents filed with the SEC by CSX and NSC are
accessible on the SEC's website at http://www.sec.gov/, CSX's
website at http://www.csx.com/ and NSC's website at
http://www.nscorp.com/. DATASOURCE: Norfolk Southern Corp. CONTACT:
Media: Bob Fort, +1-757-629-2710, or Investors: Leanne Marilley,
+1-757-629-2861, both of Norfolk Southern Corp.; Adam Hollingsworth
of CSX Corporation, +1-904-366-2949; or Jonathan M. Broder of
Consolidated Rail Corporation, +1-215-209-5020 Web site:
http://www.nscorp.com/ http://www.csx.com/ Company News On-Call:
http://www.prnewswire.com/comp/626525.html
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