Summary
Union Pacific Corporation (UNP) announced significant financing activities through an 8-K filing on August 8, 2016. The company's Board of Directors renewed its authorization to issue up to $4.0 billion of debt securities under its existing shelf registration. This action provides substantial financial flexibility for future capital needs and strategic initiatives. Further detailing these activities, UNP completed the issuance of $450 million in aggregate principal amount of debt securities on August 8, 2016. Specifically, the company sold $150 million of 2.750% Notes due 2026 and $300 million of 3.350% Notes due 2046. This issuance was conducted under the previously authorized shelf registration, leaving $3.55 billion of available debt issuance authority. Investors should note the specific coupon rates and maturity dates of these newly issued notes as they reflect the company's current cost of debt.
Key Highlights
- 1Board renewed authorization to issue up to $4.0 billion of debt securities under shelf registration.
- 2Company issued $450 million in aggregate principal amount of debt securities on August 8, 2016.
- 3The issuance included $150 million of 2.750% Notes due 2026.
- 4The issuance also included $300 million of 3.350% Notes due 2046.
- 5Following the issuance, $3.55 billion of debt issuance authority remains available under the shelf registration.
- 6The offering was made under the Company's existing shelf registration on Form S-3.
- 7Key legal documentation, including the Underwriting Agreement and opinions of counsel, were filed as exhibits.