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CANADIAN NATIONAL OFFERS DEBT SECURITIES

 MONTREAL, May 11 /PRNewswire/ -- Canadian National has returned to the U.S. long-term securities market after an absence of more than a decade. The company today offered debt securities totalling US$300 million: US$150 million of ten-year notes that will bear interest at an annual rate of 6.625 percent; and US$150 million of 30-year debentures that will bear interest at an annual rate of 7.625 percent. Salomon Brothers Inc is lead manager for the offering.
 CN will use the funds to repay short-term debt and for general corporate purposes which may include capital expenditures and other debt repayments. During the past ten years, CN has raised capital by selling its telecommunications and hotel assets and by issuing securities on European and Canadian markets.
 Wholly owned by the Government of Canada, CN operates at arms length on a commercial basis. Its Canadian and U.S. transportation operations are conducted as an integrated business under the name CN North America. These operations include the largest transcontinental railway in Canada, railroad operations in eleven U.S. states, and alliances with other North American rail and truck carriers. Its other business interests include real estate management and development, other commercial activities in Canada and transportation and telecommunications consulting and technology transfer around the world.
 The company announced plans, March 1, to rationalize and restructure its operations. It will trim its workforce by a third during the next three years, and significantly reduce infrastructure costs. A special provision for workforce reduction, of about US$700 million, is included in the company's financial statements for 1992.
 "CN is positioning itself for the long-term as a more competitive, profitable, company," explained Paul Tellier, president and chief executive officer. "Cost reduction and productivity improvements will rapidly improve the company's performance, reducing annual costs by the equivalent of about US$510 million by the end of 1997."
 Consistent with previous issues, the securities offered today are not obligations of or guaranteed by the Government of Canada.
 -0- 5/11/93
 /CONTACT: Robert Frank, 514-399-7210, for Canadian National/


CO: Canadian National ST: Quebec IN: TRN SU: OFR

LR -- NY071 -- 7149 05/11/93 14:42 EDT
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Publication:PR Newswire
Date:May 11, 1993
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