Norfolk Southern selling $250 million in 100-year bonds

Norfolk Southern Corp. on Monday said it is selling $250 million in 100-year bonds, a reopening of a March 2005 deal in which it issued $300 million in bonds due in 2105.

"The reason we're doing it - and the reason we're doing it now - is that the interest rates are low and there's a strong demand for this kind of instrument," spokesman Robin Chapman said.

The securities began selling Monday, with a yield of 5.95 percent, according to a report by Bloomberg News.

Earlier in the day, the company had offered $100 million in 100-year bonds and later increased the amount to $250 million. The proceeds will be used for general corporate purposes, Chapman said.