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Today, CSX Corporation (NASDAQ:CSX), a leading transportation supplier with a market capitalization of $58 billion, announced the completion of a public offering of $600 million in aggregate principal amount of 5.050% notes due in 2035. This adds to the company’s existing total debt of $19.2 billion. The notes were issued under an existing indenture with The Bank of New York Mellon (NYSE:BK) Trust Company, N.A., as trustee, supplemented by several amendments, the latest being the Eleventh Supplemental Indenture dated July 28, 2022.
The issuance was made in accordance with the company’s shelf registration statement, which became effective on February 27, 2025. The prospectus and prospectus supplement pertaining to the offering and sale of the notes were filed with the Securities and Exchange Commission on March 7, 2025.
This financial move by CSX Corp creates a direct financial obligation that will mature in a decade, offering investors fixed income over a long-term period. The notes’ offering was part of a strategic initiative to manage the company’s capital structure and to fund its ongoing operations and future investment plans. According to InvestingPro data, CSX maintains a fair financial health score of 2.23, with particularly strong profitability metrics.
The company’s actions, including the pricing and terms of the notes, were detailed in the Action (WA:ACT) of Authorized Pricing Officers dated March 6, 2025, and the form of the global notes for the offering is available as exhibits to the Current Report on Form 8-K.
CSX Corporation, headquartered in Jacksonville, Florida, operates one of the largest railroad networks in the United States, providing rail, intermodal, and rail-to-truck transload services. The company’s impressive 48.7% gross profit margin and 45-year history of consistent dividend payments demonstrate its operational efficiency. Currently trading near its 52-week low, InvestingPro analysis suggests the stock may be undervalued. The company’s financial strategy, as evidenced by this latest offering, is part of its broader efforts to maintain a solid financial foundation while continuing to invest in its infrastructure and services. Discover 12 more exclusive insights and detailed financial metrics with InvestingPro’s comprehensive research report.
The information reported is based on a press release statement and the official SEC filing by CSX Corporation.
In other recent news, CSX Corporation reported fourth-quarter earnings per share (EPS) of $0.42, meeting expectations largely due to a tax benefit despite a revenue shortfall. Analysts from Benchmark, RBC Capital, Baird, Stifel, and BMO Capital have provided updates on their outlooks for CSX. Benchmark maintained a Buy rating with a $38 price target, highlighting the company’s forecast of challenges through 2025, including impacts from lower export coal and fuel prices. RBC Capital adjusted its price target to $33 while maintaining a Sector Perform rating, citing cost pressures anticipated in the first quarter of 2025. Baird also lowered its price target to $38, maintaining an Outperform rating, and noted challenges from infrastructure projects and market conditions. Stifel reaffirmed its Buy rating with a $37 price target, suggesting potential growth as disruptions subside and new infrastructure becomes operational. BMO Capital reduced its price target to $38 but maintained an Outperform rating, pointing to short-term headwinds and potential medium-term growth opportunities. These developments reflect the varied analyst perspectives on CSX’s current challenges and future prospects.
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