8-KOther Events

CORNING INC /NY 8-K Report (Nov 13, 2001)

Filed November 13, 2001For Securities:GLW

Summary

Corning Incorporated (GLW) announced on November 8, 2001, its intention to issue and sell US$600 million in principal amount of 3.50% Convertible Debentures due November 1, 2008. This offering, managed by a syndicate of prominent underwriters including Goldman, Sachs & Co. and J.P. Morgan Securities Inc., also includes an option for the underwriters to purchase an additional $90 million in debentures. These debentures are convertible into Corning's common stock at a conversion price of $9.6750 per share. The primary purpose of this filing is to inform investors about this significant debt issuance. The convertible debentures offer investors the potential to benefit from any future appreciation in Corning's stock price while providing the company with a source of capital. The filing also includes a computation of the company's Ratio of Earnings to Combined Fixed Charges and Preferred Dividends for several historical periods, which can offer insights into the company's ability to service its debt obligations.

Key Highlights

  • 1Corning Inc. is issuing US$600 million in 3.50% Convertible Debentures due November 1, 2008.
  • 2Underwriters have an option to purchase an additional $90 million in debentures.
  • 3The debentures are convertible into Corning common stock at $9.6750 per share.
  • 4The offering is being underwritten by a syndicate including Goldman, Sachs & Co. and J.P. Morgan Securities Inc.
  • 5The filing includes the form of the Second Supplemental Indenture governing the debentures.
  • 6A calculation of the Ratio of Earnings to Combined Fixed Charges and Preferred Dividends is provided for historical periods.

Frequently Asked Questions

The main purpose of this 8-K filing is to report Corning's entry into an Underwriting Agreement to issue and sell US$600 million principal amount of 3.50% Convertible Debentures due November 1, 2008. It provides key details about the offering, including the underwriters and the terms of the convertible debentures.

Convertible debentures are a type of bond that can be converted into a predetermined amount of the issuer's common stock. For investors, this means they can receive regular interest payments (3.50% in this case) and also have the potential to profit if the price of Corning's common stock rises above the conversion price of $9.6750 per share.

Corning aims to raise US$600 million from the sale of the convertible debentures. There is also an option for the underwriters to purchase an additional $90 million in debentures, which could increase the total capital raised to $690 million.

This ratio is a financial metric used to assess a company's ability to cover its fixed charges, which include interest expenses and preferred stock dividends. A higher ratio generally indicates a stronger ability to meet these obligations, providing comfort to bondholders and investors regarding the company's financial health and capacity to service its debt.