Carrier Global Corporation (CARR, Financial) has announced a strategic financial maneuver involving the redemption of its 4.375% Euro-denominated notes due in 2025. The company has issued a conditional notice of redemption to the holders of these notes, which amount to €750 million. The redemption is scheduled for November 8, 2024.
The redemption price will be the greater of two calculations: the sum of the present values of the remaining scheduled payments of principal and interest, discounted to the redemption date at the comparable government bond rate plus 20 basis points, minus accrued interest, or 100% of the principal amount of the notes, plus accrued and unpaid interest.
To finance this redemption, Carrier Global Corporation plans to utilize proceeds from a private offering of €750 million in euro-denominated notes due 2037, alongside cash on hand. This offering is targeted at qualified institutional buyers under Rule 144A of the Securities Act of 1933, or to non-U.S. persons in compliance with Regulation S.
The redemption is contingent upon the successful completion of this offering or another satisfactory financing arrangement. This move reflects Carrier's proactive approach to managing its debt and optimizing its financial structure.
Investors and stakeholders are advised that this announcement does not constitute an offer to sell or a solicitation to buy the new notes, which will not be registered under the Securities Act or any other jurisdiction's securities laws.
Should you invest in Carrier Global Corp (CARR, Financial) right now? Before you do it, it’s important to understand the business profitability and stock valuations, and find out what the warning signs are about. See the in-depth Carrier Global Corp (CARR) stock research here.
