Carrier Announces Reference Yields and Total Considerations for its Cash Tender Offers for its Outstanding Debt Securities
Carrier Global (NYSE: CARR) has announced the Reference Yields for its previously announced cash tender offers for outstanding debt securities. The company aims to purchase up to $1.0 billion in aggregate purchase price, with specific caps on certain note series. The tender offers include:
1. 5.900% Notes due 2034 (capped at $125 million)
2. 6.200% Notes due 2054 (capped at $350 million)
3. 3.577% Notes due 2050 (no cap)
Due to high demand, the company will accept $125 million of 2034 Notes, $350 million of 2054 Notes, and $599.577 million of 2050 Notes on a prorated basis. The settlement date for accepted securities is expected to be August 13, 2024. The tender offers will expire on August 22, 2024, unless extended or terminated earlier.
Carrier Global (NYSE: CARR) ha annunciato i rendimenti di riferimento per le sue precedentemente annunciate offerte in contante per titoli di debito in circolazione. L'azienda intende acquistare fino a 1,0 miliardi di dollari in totale, con specifici limiti su alcune serie di note. Le offerte di acquisto includono:
1. Note al 5,900% in scadenza nel 2034 (limitato a 125 milioni di dollari)
2. Note al 6,200% in scadenza nel 2054 (limitato a 350 milioni di dollari)
3. Note al 3,577% in scadenza nel 2050 (senza limite)
Data l'alta domanda, l'azienda accetterà 125 milioni di dollari di Note 2034, 350 milioni di dollari di Note 2054 e 599,577 milioni di dollari di Note 2050 su base proporzionale. La data di regolamento per i titoli accettati è prevista per il 13 agosto 2024. Le offerte di acquisto scadranno il 22 agosto 2024, a meno che non vengano prorogate o terminate in anticipo.
Carrier Global (NYSE: CARR) ha anunciado los rendimientos de referencia para sus ofertas de compra en efectivo previamente anunciadas para títulos de deuda en circulación. La empresa busca comprar hasta 1.0 mil millones de dólares en precio de compra agregado, con límites específicos en ciertas series de notas. Las ofertas de compra incluyen:
1. Notas al 5.900% con vencimiento en 2034 (limitado a 125 millones de dólares)
2. Notas al 6.200% con vencimiento en 2054 (limitado a 350 millones de dólares)
3. Notas al 3.577% con vencimiento en 2050 (sin límite)
Debido a la alta demanda, la empresa aceptará 125 millones de dólares en notas de 2034, 350 millones de dólares en notas de 2054 y 599.577 millones de dólares en notas de 2050 de manera prorrateada. La fecha de liquidación para los títulos aceptados se espera para el 13 de agosto de 2024. Las ofertas de compra expirarán el 22 de agosto de 2024, a menos que se amplíen o finalicen antes.
Carrier Global (NYSE: CARR)는 이전에 발표한 현금 입찰 제안서에 대한 참고 수익률을 발표했습니다. 이 회사는 특정 노트 시리즈에 대해 한도를 두고 총 10억 달러까지 구매할 계획입니다. 입찰 제안에는 다음이 포함됩니다:
1. 2034년 만기 5.900% 노트 (한도: 1억 2500만 달러)
2. 2054년 만기 6.200% 노트 (한도: 3억 5000만 달러)
3. 2050년 만기 3.577% 노트 (한도 없음)
높은 수요로 인해 회사는 2034년 노트 1억 2500만 달러, 2054년 노트 3억 5000만 달러, 2050년 노트 5억 9957만 7000달러를 비례 배분하여 수락할 것입니다. 수락된 증권의 정산일은 2024년 8월 13일로 예상됩니다. 입찰 제안은 2024년 8월 22일에 만료됩니다. 단, 연장되거나 조기 종료될 수 있습니다.
Carrier Global (NYSE: CARR) a annoncé les rendements de référence pour ses offres d'achat en espèces précédemment annoncées pour des titres de créance en circulation. L'entreprise vise à acquérir jusqu'à 1,0 milliard de dollars au prix d'achat total, avec des plafonds spécifiques sur certaines séries de billets. Les offres d'achat incluent :
1. Billets à 5,900% arrivant à échéance en 2034 (plafonné à 125 millions de dollars)
2. Billets à 6,200% arrivant à échéance en 2054 (plafonné à 350 millions de dollars)
3. Billets à 3,577% arrivant à échéance en 2050 (sans plafond)
En raison de la forte demande, l'entreprise acceptera 125 millions de dollars de billets de 2034, 350 millions de dollars de billets de 2054 et 599,577 millions de dollars de billets de 2050 sur une base proportionnelle. La date de règlement pour les titres acceptés est prévue pour le 13 août 2024. Les offres d'achat expireront le 22 août 2024, sauf prolongation ou résiliation anticipée.
Carrier Global (NYSE: CARR) hat die Referenzrenditen für ihre zuvor angekündigten Barangebote für ausstehende Schuldtitel bekannt gegeben. Das Unternehmen plant, bis zu 1,0 Milliarden USD im Gesamtpreis zu kaufen, wobei spezifische Obergrenzen für bestimmte Anleihen-Serien festgelegt sind. Die Angebote umfassen:
1. 5,900% Anleihen mit Fälligkeit 2034 (begrenzt auf 125 Millionen USD)
2. 6,200% Anleihen mit Fälligkeit 2054 (begrenzt auf 350 Millionen USD)
3. 3,577% Anleihen mit Fälligkeit 2050 (keine Obergrenze)
Aufgrund der hohen Nachfrage wird das Unternehmen 125 Millionen USD der 2034-Anleihen, 350 Millionen USD der 2054-Anleihen und 599,577 Millionen USD der 2050-Anleihen auf einer quotenbasierten Grundlage akzeptieren. Das Abreisedatum für die akzeptierten Wertpapiere wird auf 13. August 2024 festgelegt. Die Angebote laufen am 22. August 2024 ab, es sei denn, sie werden verlängert oder früher beendet.
- Carrier is managing its debt structure through strategic tender offers
- High demand for the tender offers indicates investor interest in Carrier's debt securities
- The company is able to repurchase up to $1 billion in debt, potentially improving its balance sheet
- The tender offers may result in a cash outflow of up to $1 billion, potentially impacting the company's liquidity
Insights
Carrier's tender offer for
The proration rates indicate high investor interest, particularly in the 2054 notes (
Overall, this move appears positive for Carrier, as it allows the company to optimize its debt structure in a controlled manner, potentially leading to lower interest expenses in the future.
The tender offer's structure reveals Carrier's strategic approach to debt management. By setting Series Tender Caps for the 2034 and 2054 notes (
The Total Consideration offered for each series (
The oversubscription and resulting proration indicate strong market demand for Carrier's debt, which is a positive sign for the company's creditworthiness. This successful tender offer could potentially lead to improved credit ratings and more favorable terms for future debt issuances.
Title of | CUSIP Number / ISIN | Principal | Acceptance | Series Tender |
| Reference | Fixed | Early | Total | Proration |
| 14448CBC7 / 14448CAY0 / U1453PAN1 / | 1 |
| 3.931 % | +85 bps | 17.2 % | ||||
| 14448CBD5 / 14448CBA1 / U1453PAQ4 / | 2 |
| 4.229 % | +100 bps | 50.6 % | ||||
| 14448CAS3 / 14448CAC8 / U1453PAC5 / | 3 | N/A |
| 4.229 % | +95 bps | 66.2 % |
(1) | The offers with respect to the Securities are subject to the Aggregate Purchase Price and, in the case of the Notes due 2034 and the Notes due 2054, the applicable Series Tender Cap. The Company will purchase an amount of Securities such that the aggregate purchase price (excluding accrued and unpaid interest) for all such Securities does not exceed the Aggregate Purchase Price, subject to the Acceptance Priority Levels as set forth in the table above (each, an "Acceptance Priority Level") and the Series Tender Caps. The Company reserves the right to increase, decrease or eliminate the Aggregate Purchase Price and/or either or both of the Series Tender Caps at any time, subject to compliance with applicable law. | ||||
(2) | Each Reference Yield was determined at 10:00 a.m., | ||||
(3) | Per | ||||
(4) | Payable per each | ||||
(5) | Proration rate is rounded. | ||||
The Tender Offers are being made pursuant to an offer to purchase, dated July 26, 2024 (as it may be amended or supplemented from time to time, the "Offer to Purchase"), which sets forth the terms and conditions of the Tender Offers. The Tender Offers will expire one minute after 11:59 p.m.,
The applicable consideration (the "Total Consideration") offered per
Because the aggregate purchase price (excluding accrued and unpaid interest) for the aggregate principal amount of Securities validly tendered and not validly withdrawn prior to 5:00 p.m., New York City Time, on the Early Tender Date would exceed the Aggregate Purchase Price, and the aggregate principal amounts of the Notes due 2034 and Notes due 2054 validly tendered and not validly withdrawn prior to the Early Tender Date would exceed their respective Series Tender Caps, the Company will not accept for purchase all Securities that have been validly tendered and not validly withdrawn by the Early Tender Date. The Company will accept for purchase
The Company's obligation to accept for payment and to pay for the Securities validly tendered in the Tender Offers is not subject to any minimum tender condition, but is subject to the satisfaction or waiver of the conditions described in the Offer to Purchase. The Company reserves the right, subject to applicable law, at any time to (i) waive any and all conditions to any of the Tender Offers, (ii) extend or terminate any of the Tender Offers, (iii) increase, decrease or eliminate the Aggregate Purchase Price, (iv) increase, decrease or eliminate either or both of the Series Tender Caps, or (v) otherwise amend any of the Tender Offers in any respect.
Information Relating to the Tender Offers
The Offer to Purchase is being distributed to holders beginning today. Morgan Stanley, J.P. Morgan and Wells Fargo Securities are the lead dealer managers for the tender offers and Deutsche Bank Securities and Goldman Sachs & Co. LLC are the co-dealer managers for the tender offers (collectively, the "Dealer Managers"). Investors with questions regarding the Tender Offers may contact Morgan Stanley at (800) 624-1808 (toll free), J.P. Morgan at (866) 834-4666 (toll free) or (212) 834-4045 (collect) or Wells Fargo at (866) 309-6316 (toll-free) or (704) 410-4759 (collect). D.F. King & Co., Inc. is the tender and information agent for the Tender Offers (the "Tender and Information Agent") and can be contacted at (866) 342-4882 (bankers and brokers can call collect at (212) 269-5550) or by email at carr@dfking.com.
None of the Company or its affiliates, their respective boards of directors, the Dealer Managers, the Tender and Information Agent or the trustee with respect to any series of Securities is making any recommendation as to whether holders should tender any Securities in response to any of the Tender Offers, and neither the Company nor any such other person has authorized any person to make any such recommendation. Holders of Securities must make their own decision as to whether to tender any of their Securities, and, if so, the principal amount of Securities to tender.
This press release shall not constitute an offer to sell, a solicitation to buy or an offer to purchase or sell any securities. The Tender Offers are being made only pursuant to the Offer to Purchase and only in such jurisdictions as is permitted under applicable law.
The full details of the Tender Offers, including complete instructions on how to tender Securities, are included in the Offer to Purchase. The Offer to Purchase, including materials incorporated by reference therein, contains important information that should be read by holders of Securities before making a decision to tender any Securities. Copies of the Offer to Purchase may be obtained from D.F. King & Co., Inc., free of charge, by calling toll-free at (866) 342-4882 (bankers and brokers can call collect at (212) 269-5550) or by email at carr@dfking.com.
About Carrier
Carrier Global Corporation, global leader in intelligent climate and energy solutions, is committed to creating solutions that matter for people and our planet for generations to come. From the beginning, we've led in inventing new technologies and entirely new industries. Today, we continue to lead because we have a world-class, diverse workforce that puts the customer at the center of everything we do.
Forward-Looking Statements
This communication contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. These forward-looking statements are intended to provide management's current expectations or plans for Carrier's future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "confident," "scenario" and other words of similar meaning in connection with a discussion of future operating or financial performance. Forward-looking statements may include, among other things, statements relating to the planned completion of the Tender Offers, future sales, earnings, cash flow, results of operations, uses of cash, share repurchases, tax rates and other measures of financial performance or potential future plans, strategies or transactions of Carrier, Carrier's plans with respect to its indebtedness and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see Carrier's reports on Forms 10-K, 10-Q and 8-K filed with or furnished to the
Contact: | Investor Relations Sam Pearlstein 561-365-2251 | |
Media Inquiries Rob Six 561-281-2362 |
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SOURCE Carrier Global Corporation
FAQ
What is the total amount Carrier (CARR) aims to purchase in its cash tender offers?
What are the Series Tender Caps for Carrier's (CARR) 2034 and 2054 Notes?
When is the settlement date for Carrier's (CARR) tender offers?
What is the expiration date for Carrier's (CARR) tender offers?
