Carrier Global Corporation (CARR, Financial) has successfully completed its previously announced private offering of €750 million in euro-denominated notes, bearing an interest rate of 3.625% and maturing in 2037. This strategic financial maneuver is part of Carrier's ongoing efforts to optimize its debt structure and manage its financial obligations effectively.
The proceeds from this offering, combined with cash on hand, were utilized to redeem the company's 4.375% Notes due 2025, listed on the NYSE as CARR25. This redemption aligns with Carrier's strategy to reduce interest expenses and extend its debt maturity profile.
The newly issued notes were governed by a Supplemental Indenture dated November 8, 2024, in conjunction with a Base Indenture from November 29, 2023. Interest on these notes began accruing on the issue date, with annual payments scheduled to commence on January 15, 2025.
Carrier retains the option to redeem these notes prior to October 15, 2036, at a "make-whole" premium, and post this date, at par value. Additionally, in the event of a change of control, noteholders may require Carrier to repurchase the notes at 101% of their principal value.
The offering was conducted under Rule 144A and Regulation S, targeting qualified institutional buyers and non-U.S. persons, respectively. As part of the issuance, Carrier entered into a Registration Rights Agreement to facilitate the exchange of these notes for registered ones, ensuring compliance with U.S. securities regulations.
This financial move underscores Carrier's commitment to maintaining a robust capital structure while providing flexibility to navigate future market conditions. Investors and stakeholders will be keenly observing how this strategic decision impacts Carrier's financial performance and market positioning in the coming years.
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