Summary
Corning Incorporated (GLW) filed an 8-K on November 6, 2018, to announce the completion of a public offering of $850 million in aggregate principal amount of new senior notes. The offering included $50 million of 4.70% notes due 2037 (a further issuance consolidating with existing notes), $550 million of 5.350% notes due 2048, and $300 million of 5.850% notes due 2068. The net proceeds from this offering are expected to be approximately $887 million, after underwriting discounts and estimated expenses. Investors should note that Corning intends to use these net proceeds for general corporate purposes. This includes potential share repurchases and dividends, debt repayment, acquisitions, working capital additions, capital expenditures, and investments. The company may invest these proceeds in short-term instruments pending their utilization. The notes were issued under the company's existing shelf registration statement and established pursuant to an Indenture dated November 8, 2000.
Key Highlights
- 1Corning Inc. completed a public offering of $850 million in senior notes on November 5, 2018.
- 2The offering consists of three tranches: $50 million of 4.70% notes due 2037, $550 million of 5.350% notes due 2048, and $300 million of 5.850% notes due 2068.
- 3The 4.70% notes due 2037 represent a further issuance that will consolidate with and form a single series with existing notes of the same maturity and coupon.
- 4Net proceeds from the offering are estimated at approximately $887 million.
- 5Proceeds are earmarked for general corporate purposes, including share repurchases, dividends, debt reduction, acquisitions, and capital expenditures.
- 6The notes were issued under Corning's existing Form S-3 registration statement.
- 7The company entered into underwriting and pricing agreements with Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, and Wells Fargo Securities, LLC.