8-KOther Events

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

Filed October 28, 2024For Securities:CARR

Summary

Carrier Global Corporation (CARR) announced on October 28, 2024, the pricing of a private offering for €750,000,000 aggregate principal amount of 3.625% euro-denominated notes due 2037. This strategic move is primarily aimed at refinancing existing debt, with the net proceeds earmarked to redeem the Company's entire €750 million outstanding 4.375% Euro 2025 Notes and cover associated offering expenses. The transaction is expected to close on November 8, 2024, contingent upon standard closing conditions. This debt issuance represents a proactive approach by Carrier to manage its capital structure by extending its debt maturity profile and potentially lowering its overall interest expense. The refinancing of the Euro 2025 Notes with longer-dated debt suggests a confident outlook on long-term financial stability and operational cash flow generation. Investors should note that this offering was conducted through private placements, targeting qualified institutional buyers, and will be subject to future registration statements with the SEC.

Key Highlights

  • 1Carrier Global Corp priced a €750 million offering of 3.625% notes due 2037.
  • 2The primary use of proceeds is to redeem the entire €750 million of outstanding 4.375% Euro 2025 Notes.
  • 3The offering is expected to close on November 8, 2024.
  • 4This transaction is a refinancing effort to extend debt maturity and potentially reduce interest costs.
  • 5The notes were offered privately to qualified institutional buyers and non-U.S. persons.
  • 6An exchange or resale registration statement will be filed with the SEC.

Frequently Asked Questions

The main purpose is to refinance Carrier's outstanding €750 million of 4.375% Euro 2025 Notes with new, longer-dated notes (due 2037) and to cover the expenses associated with this offering. This is a debt maturity extension strategy.

The new notes carry a coupon of 3.625% and are due in 2037.

This offering is a refinancing; it replaces existing debt with new debt of the same principal amount (€750 million). Therefore, it is not expected to increase the company's overall debt burden, but rather to alter its maturity profile and potentially its interest expense.

The notes were offered privately to qualified institutional buyers in the U.S. (under Rule 144A) and to non-U.S. persons outside the United States (under Regulation S). They were not offered to the general public.