How much did Otis raise and what will the proceeds be used for?

Otis issued $500 million aggregate principal amount of 5.131% Notes due 2035, with estimated net proceeds of about $495.2 million. The Company intends to use the proceeds first to repay its 0.370% Notes due March 18, 2026 (¥21.5 billion, about $147 million as of June 30, 2025), with the remainder used to repay certain commercial paper borrowings and for other general corporate purposes.

When do the notes mature and how is interest paid?

The notes mature on September 4, 2035. Interest accrues at 5.131% per year and is payable on March 4 and September 4 of each year, beginning March 4, 2026.

Can Otis redeem the notes early?

Yes. Before June 4, 2035, Otis may redeem the notes in whole or in part at principal plus a make-whole premium and accrued interest. On or after June 4, 2035, it may redeem at 100% of principal plus accrued interest.

What protections do noteholders have if control of Otis changes?

Upon a Change of Control Triggering Event, holders may require Otis to purchase their notes at 101% of principal plus accrued and unpaid interest, unless Otis has exercised its right to redeem the notes by irrevocable notice within 30 days after the event.

What restrictions does the indenture place on Otis?

The Otis Indenture contains customary restrictions that limit the ability to incur additional liens, make certain fundamental changes, and enter into sale and leaseback transactions, and it includes customary events of default.

OTIS 8-K SEC Disclosure

01—Abstract

Summary

Summary of the 8-K filed September 4, 2025. Cited figures are marked; the original filing is the authoritative source.

Otis Worldwide Corporation issued $500 million^a aggregate principal amount of 5.131% Notes due September 4, 2035 on September 4, 2025, registered under its Form S-3ASR (File No. 333-270834) and sold under a prospectus supplement dated September 2, 2025.

The filing states that net proceeds, after the underwriting discount and offering expenses, are estimated at approximately $495.2 million^b. The Company intends to use the proceeds to repay at maturity its 0.370% Notes due March 18, 2026 (the 2026 Yen Notes), of which ¥21.5 billion (approximately $147 million as of June 30, 2025) is outstanding, with the remainder used to repay certain commercial paper borrowings and for other general corporate purposes. The notes are unsecured, unsubordinated obligations that rank equally with the Company's existing and future unsecured, unsubordinated indebtedness.

Interest is payable semi-annually on March 4 and September 4, beginning March 4, 2026. The Company may redeem the notes before June 4, 2035 at a make-whole premium, and at par plus accrued interest on or after that date. Upon a Change of Control Triggering Event, holders may require repurchase at 101%^c of principal plus accrued interest, unless the Company exercises its redemption right.

The Otis Indenture, dated February 27, 2020, with The Bank of New York Mellon Trust Company, N.A., as trustee, contains customary restrictions limiting additional liens, certain fundamental changes, and sale and leaseback transactions, along with customary events of default. The filing is primarily a financing disclosure and exhibit filing; it reports no other financial results.

02—Key points

Key Highlights

Issued $500 million of 5.131% Notes due September 4, 2035 on September 4, 2025.
Estimated net proceeds of approximately $495.2 million after underwriting discount and offering expenses.
Proceeds intended first to repay the 0.370% 2026 Yen Notes (¥21.5 billion, about $147 million as of June 30, 2025) at maturity on March 18, 2026.
Remaining proceeds to repay certain commercial paper borrowings and for general corporate purposes.
Notes are unsecured and rank equally with existing and future unsecured, unsubordinated debt; interest payable March 4 and September 4 starting March 4, 2026.
Make-whole redemption before June 4, 2035; par redemption on or after that date. Change of control put at 101% of principal plus accrued interest.
Indenture contains customary covenants limiting liens, certain fundamental changes, and sale and leaseback transactions.

03—Questions

Frequently Asked Questions

How much did Otis raise and what will the proceeds be used for?
Otis issued $500 million aggregate principal amount of 5.131% Notes due 2035, with estimated net proceeds of about $495.2 million. The Company intends to use the proceeds first to repay its 0.370% Notes due March 18, 2026 (¥21.5 billion, about $147 million as of June 30, 2025), with the remainder used to repay certain commercial paper borrowings and for other general corporate purposes.
When do the notes mature and how is interest paid?
The notes mature on September 4, 2035. Interest accrues at 5.131% per year and is payable on March 4 and September 4 of each year, beginning March 4, 2026.
Can Otis redeem the notes early?
Yes. Before June 4, 2035, Otis may redeem the notes in whole or in part at principal plus a make-whole premium and accrued interest. On or after June 4, 2035, it may redeem at 100% of principal plus accrued interest.
What protections do noteholders have if control of Otis changes?
Upon a Change of Control Triggering Event, holders may require Otis to purchase their notes at 101% of principal plus accrued and unpaid interest, unless Otis has exercised its right to redeem the notes by irrevocable notice within 30 days after the event.
What restrictions does the indenture place on Otis?
The Otis Indenture contains customary restrictions that limit the ability to incur additional liens, make certain fundamental changes, and enter into sale and leaseback transactions, and it includes customary events of default.

04—Continue

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