United Parcel Service (NYSE: UPS) entered into an underwriting agreement on August 10, 2026, to sell $1,000,000,000 in principal amount of 4.850% Senior Notes due 2031, according to a company statement.

Of the total offering, UPS plans to contribute $200,000,000 in notes to the UPS Retirement Plan Trust, which funds the UPS Retirement Plan for current and former employees. An additional $250,000,000 in notes will be contributed to a separate Master Trust, which funds three defined benefit pension plans, including the UPS Pension Plan, also maintained for current and former employees.

The company stated it intends to use the remaining net proceeds for general corporate purposes. UPS noted it will not receive proceeds from the portion of the notes delivered to the pension trusts.