8-KOther EventsExhibits & Filings

UNION PACIFIC CORP 8-K Report, Corporate Update (Feb 19, 2019)

Filed February 19, 2019For Securities:UNP

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.

Frequently Asked Questions

Union Pacific Corporation raised a total of $3.0 billion in aggregate principal amount through the sale of its notes.

The company issued 2.950% Notes due 2022 ($500 million), 3.150% Notes due 2024 ($500 million), 3.700% Notes due 2029 ($1 billion), and 4.300% Notes due 2049 ($1 billion).

While the 8-K does not explicitly state the purpose of the debt issuance, companies typically issue debt to fund operations, capital expenditures, acquisitions, refinance existing debt, or for general corporate purposes. This offering, made under a shelf registration, suggests a planned capital management strategy.

The underwriters included Barclays Capital Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC, acting as representatives of the several underwriters.