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CSX offers sweetener to avoid exercise of upcoming put
New York, Oct. 27 - CSX Corp. said it is offering a cash sweetener and additional put date to discourage exercise of the upcoming put on its zero-coupon convertible debentures due 2021.
The Jacksonville, Fla. railroad will pay $23.00 per $1,000 principal amount at maturity of the convertibles to holders who do not exercise the put. The payment will be made on Nov. 5 to holders of record as of the close of business on Oct. 31. CSX said the payment is equivalent to 2.75% of the securities' accreted value or 2.30% of the principal amount at maturity.
In addition, CSX is adding an additional put on Oct. 30, 2005 at $852.48 per $1,000 principal amount at maturity. The new put can be paid in cash, stock or a combination at CSX's option.
The convertibles are putable on Oct. 30 for holders who give notice by Oct. 28 at a price of $835.65 in cash per $1,000 principal amount at maturity.
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