CN said the stock sale, expected to close on Sept. 22, 2015 subject to customary conditions, would be executed in three sections:
- C$350M in 2.8% notes due 2025
- C$400M in 3.95% notes due 2045
- And C$100M in 4% notes due 2065
As of June 30, the company had repurchased 16.3 million common shares for $1.24 billion under its current program of up to 28 million shares, which runs until Oct. 23, 2015, according to investment analyst Seeking Alpha.
The debt offering is being made in Canada under an effective shelf prospectus CN filed on Dec. 3, 2013. The company noted that the securities were not registered under U.S. Securities Act of 1933 and, therefore, “may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements.”