| Item 2.03. | Creation of a Direct Financial Obligation of a Registrant |
On September 14, 2018, CSX Corporation (the “Company”) entered into definitive documentation to establish a commercial paper program (the “Program”) under which the Company may issue on a private placement basis unsecured commercial paper notes (the “Notes”) pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”). Amounts available under the Program may be borrowed, repaid and reborrowed with the aggregate amount of the Notes outstanding under the Program at any time not to exceed $1 billion. The proceeds of the issuances of the Notes are expected to be used for general corporate purposes.
Initially, three commercial paper dealers will each act as a dealer under the Program (each a “Dealer” and, collectively, the “Dealers”) pursuant to the terms and conditions of a commercial paper dealer agreement entered into between the Company and each Dealer (each, a “Dealer Agreement”). Each Dealer Agreement provides the terms under which the Dealers will either purchase from the Company or arrange for the sale by the Company of Notes pursuant to an exemption from federal and state securities laws. Each Dealer Agreement contains customary representations, warranties, covenants and indemnification provisions. A national bank acts as the issuing and paying agent under the Program pursuant to the terms of an issuing and paying agent agreement.
The maturities of the Notes will vary, but may not exceed 397 days from the date of issue. The Notes will bear such interest rates, if interest bearing, or will be sold at such discount from their face amounts, as shall be agreed upon from time to time by the Dealers and the Company. The rates of interest will depend on whether the Note will be a fixed or floating rate.
The description above is a summary of the Program and is qualified in its entirety by the complete terms of the Program itself.
No direct financial obligations of the Company have arisen under the Program as of the date hereof.
The Notes have not been and will not be registered under the Securities or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. The information contained in this Current Report on Form8-K shall not constitute an offer to sell or the solicitation of an offer to purchase Notes under the Program.
