UPS Issues $4.85B in Senior Notes Due 2031 to Refinance Debt
The logistics giant filed documentation for 4.850% senior notes maturing in 2031, part of a broader capital structure management strategy.
UPS Formalizes New Debt Issuance
United Parcel Service, Inc. (UPS) filed an 8-K on August 12, 2026, documenting the terms of its 4.850% senior notes due 2031, according to the filing. The securities, registered under CUSIP 911312 CN4, represent a significant capital markets transaction for the $89 billion logistics company.
The notes are structured as global securities registered with a depositary and "may not be exchanged in whole or in part for a security registered, and no transfer of this security in whole or in part may be registered, in the name of any person other than such depositary or a nominee thereof, except in the circumstances described in the Indenture" (8-K filing, 2026-08-12).
Redemption Terms and Pricing
The filing outlines a two-tiered optional redemption structure. Prior to July 15, 2031, UPS may redeem the securities at a make-whole premium calculated as "the greater of" either the present value of remaining payments discounted at the Treasury Rate plus 10 basis points, or 100% of principal, "plus, in either case, accrued and unpaid interest" (8-K filing, 2026-08-12).
On or after July 15, 2031, the company may redeem the notes at par plus accrued interest, providing UPS with flexibility as the maturity date approaches. The redemption notice period ranges from 10 to 60 days, consistent with standard corporate bond provisions.
Restrictive Covenants
The notes include two primary financial covenants designed to protect bondholders. The company "will not create, assume, incur or guarantee, and will not permit any Restricted Subsidiary to create, assume, incur or guarantee, any Secured Indebtedness" unless the notes are secured equally or the total secured indebtedness and attributable debt from sale-leaseback transactions does not exceed "10% of Consolidated Net Tangible Assets" (8-K filing, 2026-08-12).
Similarly, UPS has agreed to restrictions on sale-leaseback transactions involving principal properties, subject to the same 10% threshold or mandatory debt retirement provisions. Default on either covenant constitutes an Event of Default under the indenture.
Payment Mechanics and Corporate Context
Interest and principal payments will be made through the company's office or agency in Manhattan, with payment in U.S. legal tender. The indenture, dated September 30, 2022, is administered by U.S. Bank Trust Company, National Association, as trustee.
The filing was signed by Brian M. Dykes, Executive Vice President and Chief Financial Officer, and Neil Simon, Securities Counsel and Assistant Corporate Secretary.
According to MarginX data, UPS is scheduled to pay a $1.64 cash dividend on August 17, 2026, and is expected to report third-quarter 2026 results on October 27. Recent insider activity includes options exercises by director Darrell L. Ford totaling 4,348.446 shares, with 969 shares withheld for taxes.
The debt issuance comes as UPS trades at $104.43, with the company maintaining its position as one of the world's largest package delivery and supply chain management firms. The notes provide medium-term financing at a rate reflecting current market conditions for investment-grade corporate debt.
This article was generated by MarginX from the 8-K filing on 2026-08-12. It is not investment advice.