American Express issues $3 billion in new notes with varying maturities

American Express Company recently issued $3 billion in new debt securities, as reported in a press release filed with the Securities and Exchange Commission. The company split the issuance into three distinct notes with varying maturities. A $1.5 billion aggregate principal amount was allocated to 5.447% Fixed-to-Floating Rate Notes maturing on October 30, 2030.

Another $1.15 billion was designated to 5.817% Fixed-to-Floating Rate Notes with an expiration date of October 27, 2034. The final installment was a $350 million Floating Rate Note also due on October 30, 2030. This significant financial move comes as American Express maintains a robust balance sheet, with liquid assets outweighing short-term obligations and a current ratio of 1.58.

The company's market capitalization stands at $213 billion, and it is currently deemed undervalued according to InvestingPro analysis, which provides comprehensive insights in its detailed Pro Research Report. The notes were issued under a senior indenture dated August 1, 2007, with additional agreements dated February 12, 2021, and May 1, 2023.

The issuance was executed under a Prospectus Supplement dated October 26, 2026, to the Prospectus first published on February 9, 2024, as part of the company's Registration Statement on Form S-3 (No. 333-276975). These new debt instruments are listed on the New York Stock Exchange alongside American Express's existing common shares and other existing notes, such as the 3.433% Fixed-to-Floating Rate Notes due May 20, 2032, and the 3.835% Fixed-to-Floating Rate Notes due June 16, 2034.

The company's recent third-quarter 2026 financial results also reported a stronger-than-expected profit, with earnings per share of $5.42, exceeding Wall Street's expectation of $4.58. However, revenue of $20.1 billion fell slightly short of forecasts, despite marking a 9% increase from the prior year and a record for the company.

American Express has revised its full-year earnings guidance upward, amidst ongoing regulatory challenges facing the company. Market reaction to the mixed results is currently being analyzed by investors, and analysts are keenly observing the company's performance in light of these financial developments.