01—Abstract
Summary
Summary of the 8-K filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Otis Worldwide Corporation issued $700,000,000a aggregate principal amount of 4.488% Notes due 2029 on May 7, 2026, registered under its Form S-3ASR (File No. 333-293482) filed February 13, 2026.
The Notes were sold under an Underwriting Agreement dated May 4, 2026 with J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and SMBC Nikko Securities America, Inc. as representatives of the underwriters. Interest is payable semi-annually on May 7 and November 7, beginning November 7, 2026, and the Notes mature May 7, 2029.
The company estimates net proceeds of approximately $695.2 millionb after the underwriting discount and offering expenses. The primary use is to repay at maturity its 0.318% Notes due December 15, 2026, of which €600 million (approximately $695 million) was outstanding as of March 31, 2026. The remainder will fund repayment of certain commercial paper borrowings and other general corporate purposes.
The Notes are unsecured, unsubordinated obligations ranking equally with existing and future unsecured, unsubordinated indebtedness. The Indenture, dated February 27, 2020 with The Bank of New York Mellon Trust Company, N.A. as trustee and supplemented by Supplemental Indenture No. 6, restricts liens, certain fundamental changes and sale and leaseback transactions. Holders may require repurchase at 101%c of principal plus accrued interest upon a Change of Control Triggering Event, and the Notes are redeemable at a make-whole premium before April 7, 2029, and at par thereafter.
02—Key points
Key Highlights
- $700 million aggregate principal of 4.488% Notes due May 7, 2029 issued May 7, 2026
- Estimated net proceeds of approximately $695.2 million after underwriting discount and expenses
- Proceeds primarily intended to repay the 0.318% Notes due December 15, 2026 (€600 million, approximately $695 million outstanding as of March 31, 2026)
- Remaining proceeds to fund certain commercial paper repayment and general corporate purposes
- Notes are unsecured, unsubordinated and rank equally with existing and future unsecured, unsubordinated indebtedness
- Make-whole redemption before April 7, 2029; redemption at 100% of principal thereafter
- Change of control put at 101% of principal plus accrued interest; Indenture limits liens, certain fundamental changes and sale and leaseback transactions
03—Questions
Frequently Asked Questions
What were the terms of the Otis Notes issued on May 7, 2026?
Otis issued $700 million aggregate principal amount of 4.488% Notes due May 7, 2029. Interest is payable May 7 and November 7 each year, beginning November 7, 2026. The Notes were issued in minimum denominations of $2,000 and integral multiples of $1,000 above that.
How will Otis use the proceeds from the offering?
Estimated net proceeds are about $695.2 million. The company intends to use them to repay at maturity its 0.318% Notes due December 15, 2026, of which €600 million (approximately $695 million) was outstanding as of March 31, 2026, with the remainder used to repay certain commercial paper borrowings and for general corporate purposes.
Can Otis redeem the Notes early?
Yes. Before April 7, 2029, Otis may redeem the Notes in whole or in part at principal plus a make-whole premium and accrued interest. On or after April 7, 2029, 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 exercises its redemption right by irrevocable notice within 30 days after the event.
How are the Notes ranked and what covenants apply?
The Notes are unsecured, unsubordinated obligations ranking equally in right of payment with all existing and future unsecured, unsubordinated indebtedness. The Indenture restricts the ability to incur additional liens, make certain fundamental changes and enter into sale and leaseback transactions, and contains customary events of default.
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