Norfolk Southern Sells 100-Year Bonds

Railroad's issue follows similar deal from MIT

Norfolk Southern Corp., the fourth- biggest U.S. railroad, followed Massachusetts Institute of Technology in selling 100-year bonds this month as investors snap up yields above 5 percent on investment-grade debt.

Norfolk Southern sold $400 million of 6 percent debt due 2111 to yield 175 basis points more than 30-year Treasuries, according to data compiled by Bloomberg. MIT, the school founded by William Barton Rogers in 1861, sold $750 million of taxable 5.6 percent 100-year bonds on May 11 at a 130 basis-point spread, Bloomberg data show.

Copyright 2016 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Comments

Advertisement. Closing in 15 seconds.