Summary
American Express Company (AXP) filed an 8-K on December 4, 2006, to report on the remarketing of its 1.85% convertible debentures due 2033. The company successfully remarketed an aggregate principal amount of $1,580,143,000 of these debentures. This action was taken in accordance with a prospectus supplement filed on December 1, 2006, and an underlying registration statement on Form S-3. The remarketing was facilitated through an agreement with J.P. Morgan Securities Inc., Lehman Brothers Inc., and Merrill Lynch, Pierce, Fenner & Smith Incorporated.
Key Highlights
- 1AXP completed a significant remarketing of its 1.85% convertible debentures due 2033.
- 2The aggregate principal amount remarketed was $1,580,143,000.
- 3The transaction was conducted under an existing Form S-3 registration statement.
- 4A prospectus supplement dated December 1, 2006, governed the terms of the remarketing.
- 5The remarketing was executed through a specific agreement with major financial institutions: J.P. Morgan, Lehman Brothers, and Merrill Lynch.
Frequently Asked Questions
The 8-K filing was made to formally report on the completion of a remarketing of American Express's convertible debentures.
A remarketing, in this financial context, typically involves intermediaries (underwriters or agents) offering existing securities to investors, often to adjust pricing, maturity, or other terms based on current market conditions.
Convertible debentures are a type of debt security that can be converted into a predetermined amount of the issuer's common stock. The remarketing of $1.58 billion indicates a substantial transaction that could impact the company's capital structure and potentially influence future stock dilution if converted.
The remarketing agreement was between American Express Company and three financial institutions: J.P. Morgan Securities Inc., Lehman Brothers Inc., and Merrill Lynch, Pierce, Fenner & Smith Incorporated.