United Parcel Service to price add-on to senior floaters due 2066

By Cristal Cody

Eureka Springs, Ark., Aug. 19 – The United Parcel Service is marketing an add-on to its floating-rate senior notes due March 15, 2066 (Aa3/A+) with a coupon of Libor minus 30 basis points, according to a form 424B5 filing with the Securities and Exchange Commission on Friday.

UBS Securities LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the bookrunners.

The notes are callable beginning March 15, 2046 and are putable beginning March 15, 2017.

The notes may be called in 2046 at 105 and then at amounts declining annually by 50 bps until 2056, when the notes are callable at par.

The notes are putable annually from March 15, 2017 to March 15, 2021 at 98, from March 15, 2022 to March 15, 2026 at 99 and on March 15, 2027 and every third year thereafter through 2066 at par.

Proceeds will be used for general corporate purposes.

United Parcel Service original priced $118.18 million of the notes at par on March 29 and another $73,505,000 of the notes on June 6 at par.

The package delivery and supply chain management company is based in Atlanta.

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