8-KOther Events

CARRIER GLOBAL Corp 8-K Report, Corporate Update (Oct 28, 2024)

Filed October 28, 2024For Securities:CARR

Summary

Carrier Global Corporation has announced a conditional notice of redemption for its outstanding €750 million of 4.375% Notes due 2025. The redemption is scheduled for November 8, 2024. This move is aimed at refinancing the company's debt, with plans to finance the redemption through a concurrent private offering of €750 million in euro-denominated notes due 2037 and existing cash on hand. This debt restructuring indicates a strategic effort by Carrier to manage its capital structure, potentially taking advantage of current market conditions to extend its debt maturity profile. Investors should note that the redemption is contingent upon the successful completion of the new note offering or an alternative satisfactory financing arrangement. The new notes are being offered privately to qualified institutional buyers and certain non-U.S. persons, consistent with applicable securities regulations.

Key Highlights

  • 1Carrier Global Corp is redeeming all €750 million of its 4.375% Notes due 2025 on November 8, 2024.
  • 2The redemption is conditional on the successful completion of a new financing arrangement.
  • 3The company is simultaneously conducting a private offering of €750 million in euro-denominated notes due 2037 to fund the redemption.
  • 4The new notes are being offered to qualified institutional buyers (Rule 144A) and certain non-U.S. persons (Regulation S).
  • 5This action suggests a proactive debt management strategy, likely aimed at extending debt maturities.
  • 6The redemption price will be the greater of a calculated present value or 100% of the principal, plus accrued interest.

Frequently Asked Questions

Carrier Global Corp has issued a conditional notice to redeem all of its outstanding €750 million in 4.375% Notes due 2025 on November 8, 2024. This means the company plans to pay off these notes early.

The company intends to finance the redemption using proceeds from a concurrent private offering of €750 million in new euro-denominated notes due 2037, along with cash on hand.

No, the redemption is conditional. It depends on the successful completion of the new note offering or another financing arrangement that is satisfactory to Carrier Global Corp.

The new €750 million notes due 2037 are being offered privately. In the U.S., they are being offered to persons reasonably believed to be qualified institutional buyers under Rule 144A. Outside the U.S., they are offered to persons other than U.S. persons in compliance with Regulation S.