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Norfolk Southern Corporation—Century Bonds
Conroy, Robert M. Case F-1733 / Published May 22, 2015 / 10 pages. Collection: Darden School of Business
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Product Overview

Norfolk Southern Corporation (NSC), a railway operator, was issuing a $250 million bond with a coupon of 6% and a maturity in 2105. The bonds were added to an existing $300 million 6% debt issue due 2105, which the company first sold in 2005. A bond analyst at Tidal Insurance (Tidal), has heard that the original issue of this century bond was to be $100 million, and it seemed that strong investor demand pushed NSC, to increase the total amount to $250 million. He has to decide whether Tidal should include the NSC bond in its bond portfolio.




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  • Overview

    Norfolk Southern Corporation (NSC), a railway operator, was issuing a $250 million bond with a coupon of 6% and a maturity in 2105. The bonds were added to an existing $300 million 6% debt issue due 2105, which the company first sold in 2005. A bond analyst at Tidal Insurance (Tidal), has heard that the original issue of this century bond was to be $100 million, and it seemed that strong investor demand pushed NSC, to increase the total amount to $250 million. He has to decide whether Tidal should include the NSC bond in its bond portfolio.

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