American Express Company (AXP, Financial) has announced the issuance of a series of Fixed-to-Floating Rate Notes, totaling $5 billion, as part of its strategic financial initiatives. The company has issued $1.6 billion in 4.731% Fixed-to-Floating Rate Notes due in 2029, $1.5 billion in 5.016% Fixed-to-Floating Rate Notes due in 2031, $1.5 billion in 5.667% Fixed-to-Floating Rate Notes due in 2036, and $400 million in Floating Rate Notes due in 2029. This move is aimed at optimizing the company's capital structure and enhancing its liquidity position.
The issuance was conducted under a senior indenture agreement with The Bank of New York Mellon acting as the trustee. This financial maneuver is expected to provide American Express with greater flexibility in managing its debt obligations and interest rate exposure over the coming years.
These notes were issued pursuant to a Prospectus Supplement dated April 21, 2025, to the Prospectus dated February 9, 2024, which is part of the company's Registration Statement on Form S-3. This strategic issuance underscores American Express's commitment to maintaining a robust financial foundation while continuing to deliver value to its shareholders.
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