Carrier Global Corporation Issues Redemption Notice for 4.375% Notes Due 2025

Carrier Global Corporation (NYSE:CARR) announced on October 28, 2024, that it has issued a conditional notice of redemption to holders of its 4.375% Notes due 2025, commonly referred to as the Euro 2025 Notes. The redemption is set to take place on November 8, 2024. The redemption notice outlines the company’s intention to redeem all €750,000,000 of the outstanding Euro 2025 Notes for cash.

The terms of the redemption specify that the Euro 2025 Notes will be redeemed at a price determined as the greater of two options. The first option involves the present values of the remaining scheduled payments of principal and interest on the notes discounted to the redemption date at a certain rate plus 20 basis points, and the second option comprises 100% of the principal amount of the Euro 2025 Notes, along with accrued and unpaid interest up to the redemption date.

To finance this redemption, Carrier Global Corporation plans to utilize proceeds from a private offering that commenced on the same day as the redemption notice. The private offering involves €750,000,000 aggregate principal amount of euro-denominated notes due 2037. This offering, conducted under Rule 144A of the Securities Act of 1933, is targeted at qualified institutional buyers. It is essential to note that the notes being offered have not been registered under the Securities Act or any other securities laws, and hence their sale in the United States is subject to registration or exemption requirements.

The completion of the redemption is contingent upon the successful conclusion of the private offering or another financing arrangement deemed satisfactory by Carrier Global Corporation and complies with the terms included in the redemption notice. It is crucial to distinguish that the current report on Form 8-K does not serve as a formal notice of redemption concerning the Euro 2025 Notes.

This announcement establishes Carrier Global Corporation’s strategic move to manage its debt obligations efficiently and optimize its financial position.

The publication of this information marks Carrier Global Corporation’s proactive step towards realigning its financial structure and enhancing its overall fiscal health.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Carrier Global’s 8K filing here.

About Carrier Global

Carrier Global Corporation provides heating, ventilating, and air conditioning (HVAC), refrigeration, fire, security, and building automation technologies in the United States, Europe, the Asia Pacific, and internationally. It operates through three segments: HVAC, Refrigeration, and Fire & Security.