February 19, 2009 (FinancialWire) -- Canadian National Railway Co., or CN, (NYSE: CNI) (TSX: CNR) has launched public debt offering of $550 million 5.55 per cent Notes due 2019. The company said it expects to close the financing on February 25. Citigroup Global Markets (NYSE: C) and J.P. Morgan Securities (NYSE: JPM) will serve as the bookrunners.

The company plans to use the estimated net proceeds of $540 million from the offering to repay a portion of its outstanding commercial paper and to reduce its accounts receivable securitization program.

CN said that the indebtedness being repaid was incurred for general corporate purposes, including the financing of CN's recent acquisitions of the principal lines of the Elgin, Joliet & Eastern Railway Company, and three railway subsidiaries and a rail-freight ferry operation of the Quebec Railway Corp.

Montreal-based CN, the Canadian National Railway Co. and its operating railway subsidiaries spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Alabama, and the metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth, Minnesota/Superior, Wisconsin, Green Bay, Wisconsin, Minneapolis/St. Paul, Memphis, St. Louis, and Jackson, Mississippi.

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