Summary
This 8-K filing from Corning Incorporated (GLW) on November 15, 2001, announces the exercise of an underwriter's option to purchase an additional $65 million in principal amount of 3.50% convertible debentures due November 1, 2008. This follows an initial purchase of $600 million in debentures on November 8, 2001, bringing the total issuance to $665 million. The net proceeds from this expanded offering are earmarked for general corporate purposes, including working capital, capital expenditures, and potential future acquisitions, providing the company with significant financial flexibility.
Key Highlights
- 1Underwriters exercised their option to purchase an additional $65 million of convertible debentures.
- 2Total principal amount of 3.50% convertible debentures due November 1, 2008, now stands at $665 million.
- 3Net proceeds will be used for general corporate purposes, including working capital and capital spending.
- 4The company may also use funds for future acquisitions.
- 5The debentures are redeemable at Corning's option after November 2004.
- 6The offering was made under Corning's existing $5 billion universal shelf registration statement.
- 7Goldman, Sachs & Co. was the sole bookrunning manager for the offering.
Frequently Asked Questions
Corning Incorporated issued a total of $665 million in principal amount of 3.50% convertible debentures due November 1, 2008, consisting of an initial $600 million purchase and an additional $65 million from the exercised underwriter option.
The net proceeds from the sale of these convertible debentures will be used for general corporate purposes. This includes funding working capital requirements, ongoing capital spending, and potentially financing future acquisitions.
The convertible debentures are redeemable at Corning's option starting after November 2004.
The offering of these convertible debentures was made under Corning's existing $5 billion universal shelf registration statement, which was declared effective in March 2001.