Summary
Carrier Global Corporation (CARR) filed an 8-K on June 19, 2020, to report the completion of a private placement of $750 million in 2.700% Notes due 2031. The company intends to use the net proceeds from this offering for general corporate purposes, aiming to bolster its liquidity and financial flexibility during the ongoing COVID-19 pandemic. The notes are unsecured and unsubordinated, ranking equally with other existing and future unsecured, unsubordinated obligations of Carrier. This issuance, conducted under Rule 144A and Regulation S, involved a registration rights agreement. Carrier has committed to using commercially reasonable efforts to file a registration statement for an exchange offer of these notes for new notes with substantially identical terms but without transfer restrictions or provisions for additional interest. This move is intended to provide liquidity and financial maneuverability for the company.
Key Highlights
- 1Completion of a $750 million private placement of 2.700% Notes due 2031.
- 2Proceeds intended for general corporate purposes to enhance liquidity and financial flexibility during the COVID-19 pandemic.
- 3Notes are unsecured and unsubordinated debt obligations.
- 4Issuance conducted to qualified institutional buyers and non-U.S. persons under Rule 144A and Regulation S.
- 5Carrier entered into a Registration Rights Agreement for a potential exchange offer of these notes.
- 6The company will use commercially reasonable efforts to register the notes for resale or exchange.
- 7This offering was completed on June 19, 2020.