Costco Wholesale Corporation Announces Debt Offering
May 09 2017 - 6:53PM
Costco Wholesale Corporation (“Costco” or the “Company”)
(Nasdaq:COST) today announced the pricing of its offering of $3.8
billion aggregate principal amount of senior unsecured notes. The
notes consist of the following tranches:
- $1.0 billion principal amount of 2.15% notes due May 18,
2021
- $800.0 million principal amount of 2.30% notes due May 18,
2022
- $1.0 billion principal amount of 2.75% notes due May 18,
2024
- $1.0 billion principal amount of 3.00% notes due May 18,
2027
Costco intends to use the net proceeds from the
offering and existing cash to pay the previously announced special
cash dividend of approximately $3.1 billion or $7.00 per share and
to repay at or prior to maturity all of its 1.125% Senior Notes due
December 15, 2017 in an aggregate principal amount of $1.1 billion
with associated prepayment costs. The special dividend is payable
on May 26, 2017, to shareholders of record at the close of business
on May 10, 2017. The offering is expected to close on May 18, 2017,
subject to customary closing conditions.
This announcement shall not constitute an offer
to sell or the solicitation of an offer to buy any debt securities
of Costco, nor shall there be any sale of debt securities in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction. The debt
offering will be made only by means of a prospectus supplement and
accompanying base prospectus forming part of an effective shelf
registration statement. Copies of the prospectus supplement and
accompanying base prospectus may be obtained, when available,
from: Citigroup Global Markets Inc., c/o Broadridge Financial
Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Telephone:
(800) 831-9146, prospectus@citi.com; and Guggenheim Securities,
LLC, 330 Madison Ave., New York, NY 10017, Telephone: (212)
739-0700,
GSOperationsAdministrationDepartment@guggenheimpartners.com.
Costco currently operates 729 warehouses,
including 508 in the United States and Puerto Rico, 95 in Canada,
37 in Mexico, 28 in the United Kingdom, 25 in Japan, 13 in Korea,
13 in Taiwan, eight in Australia and two in Spain. Costco
also operates electronic commerce web sites in the U.S., Canada,
the United Kingdom, Mexico, Korea and Taiwan.
Certain statements contained in this document
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. For these
purposes, forward-looking statements are statements that address
activities, events, conditions or developments that the Company
expects or anticipates may occur in the future. Such
forward-looking statements involve risks and uncertainties that may
cause actual events, results or performance to differ materially
from those indicated by such statements. These risks and
uncertainties include, but are not limited to, satisfaction of the
closing conditions required for consummation of the offering,
domestic and international economic conditions, including exchange
rates, the effects of competition and regulation, uncertainties in
the financial markets, consumer and small business spending
patterns and debt levels, breaches of security or privacy of member
or business information, conditions affecting the acquisition,
development, ownership or use of real estate, capital spending,
actions of vendors, rising costs associated with employees
(generally including health care costs), energy and certain
commodities, geopolitical conditions, and other risks identified in
the prospectus supplement and accompanying base prospectus covering
the offering and from time to time in the Company’s other public
statements and reports filed with the Securities and Exchange
Commission. Forward-looking statements speak only as of the date
they are made, and we do not undertake to update these statements,
except as required by law.
CONTACTS:
Costco Wholesale Corporation
Richard Galanti, 425/313-8203, Bob Nelson, 425/313-8255, David Sherwood, 425/313-8239
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