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CARRIER GLOBAL Corp 8-K Report, Agreement Terminated (Jun 3, 2024)

Filed June 3, 2024For Securities:CARR

Summary

Carrier Global Corporation (CARR) has filed an 8-K report on June 3, 2024, detailing significant financial maneuvers following the recent completion of its security business sale. The company has fully repaid its €2.3 billion senior unsecured delayed draw term loan facility, which was initially secured to finance the acquisition of Viessmann Group's climate solutions business. This repayment was funded by the proceeds from the sale of its Global Access Solutions business to Honeywell, which also closed on June 3, 2024. Furthermore, Carrier announced the redemption of its entire $1.0 billion outstanding 5.800% Notes due 2025. This redemption, scheduled for June 13, 2024, will be executed at a premium calculated based on the greater of par value or a present value calculation plus accrued interest. These actions demonstrate Carrier's proactive financial management, utilizing proceeds from divestitures to reduce debt and optimize its capital structure.

Key Highlights

  • 1Full repayment of the €2.3 billion senior unsecured delayed draw term loan facility, originally used for Viessmann climate solutions acquisition financing.
  • 2Debt repayment was funded by proceeds from the completed sale of the Global Access Solutions business to Honeywell International Inc.
  • 3Announcement of the redemption of all $1.0 billion outstanding 5.800% Notes due 2025.
  • 4The redemption of the 2025 Notes is set for June 13, 2024.
  • 5Redemption price for the Notes will be at a premium, calculated as the greater of 100% of principal or a present value calculation plus accrued interest.
  • 6The company's press release regarding the sale of its security business is attached as an exhibit.

Frequently Asked Questions

Carrier Global Corp has used the proceeds from the sale of its Global Access Solutions business to Honeywell International Inc. to fully repay its €2.3 billion senior unsecured delayed draw term loan facility.

The €2.3 billion delayed draw term loan facility was drawn in full on January 2, 2024, to finance the acquisition of the climate solutions business of Viessmann Group GmbH & Co. KG.

Carrier has announced the redemption of all $1.0 billion of its outstanding 5.800% Notes due 2025. The redemption is scheduled for June 13, 2024, and the notes will be redeemed at a premium price.

The redemption price is calculated as the greater of: (1) 100% of the principal amount of the Notes, or (2) the present value of the remaining scheduled payments of principal and interest discounted at the treasury rate plus 15 basis points, less accrued interest, plus accrued interest to the redemption date.