(Reuters distributed the following article on June 5.)
NEW YORK — Railroad operator Union Pacific Corp. UNP.N on Thursday said one-time costs associated with a debt refinancing will hurt third-quarter earnings.
Union Pacific said in early July it plans to repay half of its $1 billion outstanding 6.25 percent convertible preferred securities, using proceeds from a recent $500 million offering of lower-interest bonds.
One-time costs associated with the transaction will cut into its earnings by 2 cents per share in the third quarter, but the benefit of lower interest expenses will boost earnings by 2 cents per share the fourth quarter, it said.
Next year the refinancing will result in a 7-cent-per-share boost to earnings, the Omaha, Nebraska-based company said.