Costco Wholesale Corporation Announces $4 Billion Debt Offering
April 16 2020 - 06:14PM
Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq:
COST) today announced the pricing of its offering of $4 billion
aggregate principal amount of senior unsecured notes. The notes
consist of the following tranches:
- $1.25 billion principal amount of 1.375% notes due June 20,
2027
- $1.75 billion principal amount of 1.6% notes due April 20,
2030
- $1 billion principal amount of 1.75 % notes due April 20,
2032
Costco intends to use the net proceeds from the
offering to repay at or prior to maturity all of our 2.15% Senior
Notes due May 2021, in an aggregate principal amount of $1 billion,
as well as all of our 2.25% Senior Notes due February, 2022, in an
aggregate principal amount of $500 million. Remaining proceeds will
be used for general corporate purposes. The offering is expected to
close on April 20, 2020, 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:
Credit Suisse Prospectus Department, Eleven Madison Avenue, New
York, New York 10010, Telephone: (800) 221-1037,
usa.prospectus@credit-suisse.com; BofA Securities, Inc., c/o BofA
Securities, Inc., NC1-004-03-43, 200 North College Street,
3rd Floor, Charlotte, North Carolina 28255-0001, Attention:
Prospectus Department, Telephone: (800)
294-1322, dg.prospectus_requests@bofa.com; and Citigroup
Global Markets, Inc., c/o Broadridge Financial Solutions, 1155 Long
Island Avenue, Edgewood, New York 11717, Telephone: (800)
831-9146; prospectus@citi.com.
Costco currently operates 787 warehouses,
including 547 in the United States and Puerto Rico,
100 in Canada, 39 in Mexico, 29 in the United
Kingdom, 26 in Japan, 16 in Korea, 13 in Taiwan, 12
in Australia, two in Spain, and one each
in Iceland, France, and China. Costco also
operates e-commerce sites in the U.S., Canada,
the United
Kingdom, Mexico, Korea, Taiwan, Japan,
and Australia.
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. In some cases
forward-looking statements can be identified because they contain
words such as “anticipate,” “believe,” “continue,” “could,”
“estimate,” “expect,” “intend,” “likely,” “may,” “might,” “plan,”
“potential,” “predict,” “project,” “seek,” “should,” “target,”
“will,” “would,” or similar expressions and the negatives of those
terms. 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, 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 (including tariffs), the
ability to maintain effective internal control over financial
reporting, COVID-19 related factors and challenges, including among
others, the duration of the pandemic, the unknown long-term
economic impact, reduced customers shopping due to illness, travel
restrictions or financial hardship, shifts in demand away from
discretionary or higher priced products to lower priced products,
reduced workforce due to illness, quarantine, or government
mandates, temporary store closures due to reduced workforces or
government mandates, or supply chain disruptions, and other risks
identified from time to time in the Company’s public statements and
reports filed with the Securities and Exchange Commission.
Forward-looking statements speak only as of the date they are made,
and the Company does 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 |
|
Josh Dahmen, 425/313-8254 |
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