What is the purpose of this Form 8-K filing?

This Form 8-K filing announces a material event for Union Pacific Corporation: the entry into an Underwriting Agreement to issue $500 million of 5.450% Notes due 2013. This is a disclosure required when significant corporate events occur.

What are the key terms of the newly issued debt?

The company is issuing $500 million in aggregate principal amount of notes with a fixed coupon rate of 5.450%, which will mature in 2013. The specific terms are detailed in the Indenture dated April 1, 1999.

Why would Union Pacific issue new debt at this time?

Companies typically issue debt to finance operations, capital expenditures (such as infrastructure improvements or new equipment), acquisitions, or to refinance existing debt. The specific use of proceeds is not detailed in this 8-K, but it represents a capital management decision.

How does this debt issuance affect Union Pacific's financial position?

This issuance increases Union Pacific's total debt and will add to its interest expense. Investors should consider how this increased leverage impacts the company's debt-to-equity ratio and its ability to service its debt obligations, especially in the context of its overall financial health and cash flow generation.

UNP 8-K: Material Agreements & Financial Events

Summary

Union Pacific Corporation (UNP) has filed a Form 8-K detailing a significant financing event. On August 21, 2007, the company entered into an Underwriting Agreement to issue and sell $500 million in aggregate principal amount of 5.450% Notes due 2013. This offering was registered under the Securities Act of 1933, utilizing a previously established shelf registration statement on Form S-3. This issuance of debt indicates the company's ongoing capital management strategy, likely to fund operational needs, capital expenditures, or refinance existing debt. Investors should note the specific terms of the notes, including the coupon rate and maturity date, as they impact the company's leverage and interest expense profile.

Key Highlights

1Union Pacific Corporation issued $500 million in aggregate principal amount of 5.450% Notes due 2013.
2The issuance occurred on August 21, 2007, and was registered under the Securities Act of 1933 via a Form S-3 shelf registration.
3The Notes are governed by an Indenture dated April 1, 1999, with The Bank of New York as trustee.
4The company entered into a material definitive agreement with Banc of America Securities LLC, Barclays Capital Inc., and Credit Suisse Securities (USA) LLC as underwriters.
5The filing also includes an opinion from the Assistant General Counsel regarding the legality of the Notes.

UNION PACIFIC CORP 8-K Report, Material Agreement (Aug 24, 2007)

Summary

Key Highlights

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