8-KMaterial AgreementsExhibits & Filings

UNITED PARCEL SERVICE INC 8-K Report, Material Agreement (Nov 21, 2006)

Filed November 21, 2006For Securities:UPS

Summary

United Parcel Service, Inc. (UPS) filed an 8-K on November 20, 2006, to disclose the entry into a Selling Agent Agreement. This agreement allows UPS to offer and sell up to an additional $373,660,000 in aggregate principal amount of its notes, adding to the $126,340,000 already sold as of November 17, 2006. The total potential offering under this program is $500,000,000, with maturities of 9 months or longer. This filing indicates UPS is actively managing its debt financing. The notes are issued under an existing Indenture from 2003, and the selling agents, including major financial institutions like Charles Schwab, Citigroup, Merrill Lynch, and Morgan Stanley, will purchase the notes from UPS at a discount. The agreement includes standard representations, warranties, covenants, and indemnification clauses. Investors should note that the specific terms, interest rates, and maturities of these notes are detailed in a separate prospectus filed concurrently.

Key Highlights

  • 1UPS entered into a Selling Agent Agreement on November 17, 2006, to offer and sell up to $500,000,000 of notes.
  • 2As of November 17, 2006, UPS had already sold $126,340,000 of these notes.
  • 3The company can offer an additional $373,660,000 in notes under this program.
  • 4The notes will have maturities of 9 months or more from the date of issuance.
  • 5A syndicate of prominent financial institutions, including Charles Schwab, Citigroup, Merrill Lynch, and Morgan Stanley, are acting as selling agents.
  • 6The notes are issued pursuant to an existing Indenture dated August 26, 2003, with Citibank, N.A. as Trustee.
  • 7The agreement includes standard representations, warranties, covenants, and indemnification provisions for both UPS and the selling agents.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose that UPS has entered into a Selling Agent Agreement, which allows the company to issue and sell up to $500,000,000 of its notes, with maturities of 9 months or longer.

UPS can raise up to an additional $373,660,000 in notes under this new agreement, bringing the total potential principal amount of notes offered under this program to $500,000,000. They had already sold $126,340,000 as of November 17, 2006.

The selling agents include LaSalle Financial Services, Inc., Charles Schwab & Co., Inc., Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. Incorporated, Samuel A. Ramirez & Co., Inc., Muriel Siebert & Co., Inc., UBS Securities LLC, and Wachovia Securities LLC.

The notes will have maturities of 9 months or more from the date of issuance. Specific interest rates and other terms are detailed in a prospectus filed separately by UPS on November 17, 2006, which may be amended or supplemented.