Summary
This 8-K filing from American Express Company (AXP) on May 17, 2013, details the company's issuance of a significant amount of debt. Specifically, AXP entered into a Terms Agreement to sell U.S.$1,000,000,000 aggregate principal amount of 1.550% Fixed Rate Notes due May 22, 2018, and U.S.$850,000,000 aggregate principal amount of Floating Rate Notes due May 22, 2018. This debt offering, conducted through a syndicate of underwriters including Citigroup Global Markets Inc., Goldman, Sachs & Co., J.P. Morgan Securities LLC, and UBS Securities LLC, was made pursuant to an effective registration statement. The issuance aims to provide American Express with additional capital, likely for general corporate purposes or to manage its balance sheet. Investors in these notes are lending money to American Express with specific interest rates and maturity dates.
Key Highlights
- 1American Express issued U.S.$1.0 billion in 1.550% Fixed Rate Notes maturing May 22, 2018.
- 2American Express also issued U.S.$850 million in Floating Rate Notes maturing May 22, 2018.
- 3The total aggregate principal amount of debt issued is U.S.$1.85 billion.
- 4The issuance was conducted under a Terms Agreement with a group of prominent underwriters.
- 5The debt issuance is registered under a Form S-3 registration statement.
- 6The notes are governed by the Senior Debt Indenture dated August 1, 2007.
- 7This filing is an 8-K report, signaling a material event for the company.