Summary
Union Pacific Corporation (UNP) filed an 8-K on February 20, 2009, reporting a significant debt issuance. On February 17, 2009, the company entered into an Underwriting Agreement to sell a total of $750 million in aggregate principal amount of its notes. Specifically, $350 million of 5.125% Notes due 2014 and $400 million of 6.125% Notes due 2020 were issued. This issuance, registered under a shelf registration statement on Form S-3, indicates the company's strategy to secure long-term financing. Investors should note the specific interest rates and maturity dates of these new debt instruments, which will impact the company's leverage and interest expense. The filing also includes details of the underwriting syndicate, led by Citigroup Global Markets Inc., J.P. Morgan Securities Inc., and Morgan Stanley & Co. Incorporated.
Key Highlights
- 1Union Pacific Corporation issued $750 million in aggregate principal amount of new debt.
- 2The issuance comprises $350 million of 5.125% Notes due 2014 and $400 million of 6.125% Notes due 2020.
- 3The debt offering was conducted under an Underwriting Agreement dated February 17, 2009.
- 4The offering was registered under Union Pacific's existing shelf registration statement on Form S-3.
- 5Key underwriters for the offering included Citigroup Global Markets Inc., J.P. Morgan Securities Inc., and Morgan Stanley & Co. Incorporated.
- 6The filing confirms the legal opinion regarding the issuance of these Notes.