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Norfolk South (New York Stock Exchange:NSC) said Friday it is borrowing $100 million under its accounts receivable securitization facility to increase its cash position and preserve financial flexibility, according to a 8-K presentation.
The railway said in the presentation has $200 million of borrowing capacity remaining on the $400 million credit facility.
The Ohio train derailment two weeks ago will likely cost Norfolk Southern (NSC) over $100 million in remediation and other expensesaccording to Bloomberg analysts.
With the insurance, the company could pay more than $75 million out of pocket to address property damage and potential injury claims, the analysts wrote.
Norfolk Southern (NSC) faces increased scrutiny from regulators, public officials and residents following the Ohio derailment that forced a controlled burn of toxic chemicals; on Thursday, a Norfolk Southern train derailed near Detroit.
