Summary
Union Pacific Corporation (UNP) filed an 8-K on February 19, 2019, to disclose its recent debt issuance. The company successfully raised $3.0 billion in aggregate principal amount through the sale of four series of notes: 2.950% Notes due 2022, 3.150% Notes due 2024, 3.700% Notes due 2029, and 4.300% Notes due 2049. This offering was conducted under a shelf registration statement, indicating the company's strategic use of capital markets to manage its financial structure and fund its operations or growth initiatives.
Key Highlights
- 1Union Pacific Corporation issued $3.0 billion in new debt across four tranches.
- 2The notes carry coupon rates ranging from 2.950% to 4.300%, reflecting different maturity periods.
- 3The longest-dated notes, due in 2049, have a coupon of 4.300%.
- 4The shortest-dated notes, due in 2022, have a coupon of 2.950%.
- 5The offering was facilitated by a shelf registration on Form S-3, allowing for efficient capital raising.
- 6The company entered into an Underwriting Agreement with several major investment banks, including Barclays Capital Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC.
- 7Legal opinions regarding the issuance of these notes were provided by the Company's Assistant Secretary.