Summary
Corning Incorporated (GLW) filed an 8-K on November 9, 2001, to announce the completion of a $600 million offering of senior unsecured convertible debentures. These debentures mature in November 2008 and carry a coupon rate of 3.50% annually. The offering represents a new form of financing for the company and was made under its existing universal shelf registration statement. Investors should note that the debentures are convertible into Corning common stock at a price of $9.68 per share, which was a 25% premium over the closing stock price on the announcement date. The proceeds are earmarked for general corporate purposes, including working capital, capital expenditures, and potential acquisitions. This move indicates Corning's strategy to secure capital for future growth and operations.
Key Highlights
- 1Corning Inc. completed a $600 million offering of senior unsecured convertible debentures on November 8, 2001.
- 2The debentures have a 7-year maturity, due in November 2008.
- 3The annual coupon rate for the debentures is 3.50%.
- 4Debentures are convertible into Corning common stock at a price of $9.68 per share.
- 5The conversion price represented a 25% premium over the closing stock price of $7.74 on November 8, 2001.
- 6Net proceeds will be used for general corporate purposes, including working capital, capital spending, and potential acquisitions.
- 7Goldman, Sachs & Co. served as the sole bookrunning manager for the offering.