Canadian National Railway Company US$108.3 Million Offering of Pass through Certificates for CN Locomotive Financing.MONTREAL--(BUSINESS WIRE)--Sept. 17, 1996--CANADIAN NATIONAL (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). , ME: CNR See riser card. CNR - Communication and Network Riser .IR) (NYSE NYSE See: New York Stock Exchange : CNI (1) (Certified NetWare Instructor) See Novell certification. (2) (Coalition for Networked Information, Washington, DC, www.cni.org) A partnership of the Association of Research Libraries, CAUSE and EDUCOM, founded in 1990. ) -- Canadian National announced today it has agreed on the final terms of the US$ 108.3 million of pass through certificates for the financing of 105 new high-horsepower locomotives. The acquisition of these locomotives represents the first phase of a previously announced locomotive upgrade program which will strengthen the Company's ability to deliver highly reliable service to its customers. At the same time, the updating of CN's locomotive fleet will substantially reduce annual operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. due to high fuel efficiency and lower maintenance expense. Series-A1 of the pass through certificates, in the aggregate principal amount of US$ 22 million, will bear interest at an annual rate of 7.52 percent, with final maturity on January 3, 2010. Series-A2 of the pass through certificates, in the aggregate principal amount of US$ 86.3 million, will bear interest at an annual rate of 7.90 percent and will mature on January 3, 2014. The pass through certificates will be sold in the United States. Morgan Stanley & Co. Incorporated will act as underwriter. CN expects to close the financing on September 25, 1996. Canadian National is Canada's largest and North America's sixth-largest railway based on 1995 revenues. It serves all of Canada's major economic centres, natural resource regions and ports, and has strategic connections with major U.S. railroads. -0- NOTE: A copy of the final prospectus may be obtained in the United States from Morgan Stanley & Co. Incorporated, 1585 Broadway, New York, New York 10036. CONTACT: Canadian National Railway Company Canadian National Railway Company (NYSE: CNI, TSX: CNR) is a Canadian rail transportation company that operates the Canadian National Railway. It was created in December, 1918 as a Crown corporation of the Government of Canada to nationalize several bankrupt rail systems Christine Skjerven (Media), 514/399-3108 INTERNET: http://www.cn.ca or Canadian National Railway Company James M. Foote (Investment community), 514/399-0052 INTERNET: http://www.cn.ca |
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