Summary
United Parcel Service, Inc. (UPS) announced on August 10, 2026, the execution of an Underwriting Agreement to sell $1 billion in aggregate principal amount of 4.850% Senior Notes due 2031. This offering is structured to allocate a significant portion of the proceeds directly to the company's pension trusts. Specifically, $200 million principal amount of these Notes will be contributed to the UPS Retirement Plan Trust, and another $250 million will go to the Master Trust, which funds several defined benefit pension plans. The net proceeds from the portion of the offering not allocated to the trusts will be used by UPS for general corporate purposes. Investors should note that UPS will not receive proceeds from the Notes that are directly transferred to the Trusts as part of this transaction.
Key Highlights
- 1UPS to issue $1 billion in 4.850% Senior Notes due 2031.
- 2Significant portion of the Notes ($450 million) will be contributed to UPS's pension trusts.
- 3The UPS Retirement Plan Trust will receive $200 million principal amount.
- 4The Master Trust will receive $250 million principal amount to fund defined benefit pension plans.
- 5Net proceeds from the remaining Notes will be used for general corporate purposes.
- 6The offering is being conducted under an Underwriting Agreement dated August 10, 2026.
- 7The filing is for registration purposes and will be incorporated into a Form S-3.