01—Abstract
Summary
Summary of the 8-K filed June 3, 2024. Cited figures are marked; the original filing is the authoritative source.
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 billiona 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.
02—Key points
Key Highlights
- Full repayment of the €2.3 billion senior unsecured delayed draw term loan facility, originally used for Viessmann climate solutions acquisition financing.
- Debt repayment was funded by proceeds from the completed sale of the Global Access Solutions business to Honeywell International Inc.
- Announcement of the redemption of all $1.0 billion outstanding 5.800% Notes due 2025.
- The redemption of the 2025 Notes is set for June 13, 2024.
- Redemption 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.
- The company's press release regarding the sale of its security business is attached as an exhibit.
03—Questions
Frequently Asked Questions
What has Carrier Global Corp done with the proceeds from its security business sale?
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.
Why was the €2.3 billion delayed draw term loan facility taken out?
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.
What is happening with Carrier's 5.800% Notes due 2025?
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.
How is the redemption price for the 2025 Notes determined?
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.
04—Continue