The parcel giant anticipates using the net proceeds from the offering for general corporate purposes, including the repayment of commercial paper, according to a statement from the company.
UPS has priced a public offering of 1.2 billion euros ($1.28 billion) aggregate principal amount of floating rate and fixed rate senior notes in an underwritten registered public offering, according to a statement from the company.
A type of investment bond, senior notes are considered highly secure since they must be repaid to investors even in the event of a bankruptcy and take priority over other debt repayment during liquidation proceedings.
The notes will be offered in two tracts, consisting of 500 million euros of floating rate senior notes due 2020 and 700 million euros of 1.625 percent senior notes due 2025. UPS said the company expects the offering to close on Nov. 20, subject to customary closing conditions.
The parcel giant anticipates using the net proceeds of about 1.19 billion euros from the offering – minus estimated expenses and underwriters’ discounts and commissions – for general corporate purposes, including the repayment of commercial paper.
Barclays, BNP PARIBAS, Goldman, Sachs & Co. and Société Générale Corporate & Investment Banking are serving as the joint active book-running managers for the offering.
UPS offers $1.28b in senior notes
