NORFOLK, Va., Aug. 2, 2018 /PRNewswire/ -- Norfolk
Southern Corporation (NYSE: NSC) today announced that it has
entered into accelerated share repurchase (ASR) agreements with
Bank of America N.A. and Goldman Sachs & Co. LLC to repurchase
an aggregate of $1.2 billion of
Norfolk Southern's common stock.
"We are delivering on our commitment to provide significant
value to our shareholders," said Chairman, President and CEO
James A. Squires. "These ASR
transactions, combined with our ongoing, market-based share
repurchases and recent dividend increases, clearly
demonstrate our board's confidence in Norfolk Southern's present
and future."
Under the terms of the ASR agreements, Norfolk Southern will
receive initial deliveries totaling approximately 5.7 million
shares on Aug. 3, 2018. This
represents approximately 80 percent of the expected share
repurchases under the ASR program, based on the closing price of
Norfolk Southern common stock on Aug. 2,
2018. The ultimate purchase prices per share under the ASR
agreements are subject to adjustment and are expected to equal the
volume-weighted average price of Norfolk Southern's common stock
during the term of the ASR program, less a discount. The final
number of shares repurchased pursuant to the ASR program will be
determined based on such per share purchase prices. Norfolk
Southern will fund the ASR program on Aug.
3, 2018, using a portion of the proceeds generated from its
Aug. 2, 2018, debt issuance. The ASR
transactions are expected to be completed no later than the end of
January 2019.
Norfolk Southern will acquire these shares in addition to its
ongoing open-market share repurchases. Since the beginning of 2006
through June 30, 2018, Norfolk
Southern has repurchased and retired 173.3 million shares at a
total cost of approximately $12
billion.
About Norfolk Southern
Norfolk Southern Corporation (NYSE: NSC) is one of the
nation's premier transportation companies. Its Norfolk Southern
Railway Company subsidiary operates approximately 19,500 route
miles in 22 states and the District
of Columbia, serves every major container port in the
eastern United States, and
provides efficient connections to other rail carriers. Norfolk
Southern operates the most extensive intermodal network in the East
and is a major transporter of coal, automotive, and industrial
products.
Forward-looking statements
This news release
contains forward-looking statements that may be identified by the
use of words like "believe," "expect," "anticipate," "estimate,"
"plan," "consider," "project," and similar references to the
future. Forward-looking statements reflect our good-faith
evaluation of information currently available. These
forward-looking statements are subject to a number of risks and
uncertainties, and our actual results may differ materially from
those projected. Please refer to our annual and quarterly reports
filed with the SEC for a full discussion of those risks and
uncertainties we view as most important. Forward-looking statements
are not, and should not be relied upon as, a guarantee of future
performance or results, nor will they necessarily prove to be
accurate indications of the times at or by which any such
performance or results will be achieved. As a result, actual
outcomes and results may differ materially from those expressed in
forward-looking statements. We undertake no obligation to update or
revise forward-looking statements.
View original
content:http://www.prnewswire.com/news-releases/norfolk-southern-commences-1-2-billion-accelerated-share-repurchase-program-300691526.html
SOURCE Norfolk Southern Corporation