Summary
Union Pacific Corporation (UNP) filed an 8-K on February 14, 2022, disclosing the issuance of a substantial amount of new debt. Specifically, the company entered into an Underwriting Agreement on February 9, 2022, for the sale of $3.5 billion in aggregate principal amount of senior notes. These notes are split across four tranches with varying maturities and coupon rates: $1.25 billion of 2.800% Notes due 2032, $500 million of 3.375% Notes due 2042, $1.25 billion of 3.500% Notes due 2053, and $500 million of 3.850% Notes due 2072. The offering was conducted under an existing shelf registration statement on Form S-3.
Key Highlights
- 1Union Pacific Corp. successfully raised $3.5 billion in new debt financing.
- 2The debt issuance consists of four separate tranches with maturities ranging from 2032 to 2072.
- 3Coupon rates for the new notes range from 2.800% to 3.850%, reflecting different maturity periods.
- 4The 2032 and 2053 notes represent the largest portions of the issuance, at $1.25 billion each.
- 5This debt offering was made under an effective shelf registration statement on Form S-3.
- 6The notes are governed by an Indenture dated April 1, 1999, with The Bank of New York Mellon Trust Company, N.A. as Trustee.
- 7The filing includes the Underwriting Agreement and legal opinions regarding the issuance of the notes.