Carrier Global Corp Enters New Debt Agreements

TL;DR

Carrier Global Corp just refinanced some of its debt with new notes due 2025, 2028, and 2032.

AI Summary

On May 17, 2024, Carrier Global Corporation entered into a material definitive agreement related to its A4.375% Notes due 2025, A4.125% Notes due 2028, and A4.500% Notes due 2032. The company also reported the termination of a material definitive agreement and the creation of a direct financial obligation.

Why It Matters

Carrier Global Corporation is adjusting its debt structure, which could impact its financial leverage and future borrowing costs.

Risk Assessment

Risk Level: medium — Changes in debt agreements and financial obligations can introduce financial risks related to interest rates and repayment terms.

Key Numbers

• 2025 — Note Maturity Year (Maturity date for A4.375% Notes)
• 2028 — Note Maturity Year (Maturity date for A4.125% Notes)
• 2032 — Note Maturity Year (Maturity date for A4.500% Notes)

Key Players & Entities

• Carrier Global Corporation (company) — Registrant
• A4.375% Notes due 2025 (dollar_amount) — Debt instrument
• A4.125% Notes due 2028 (dollar_amount) — Debt instrument
• A4.500% Notes due 2032 (dollar_amount) — Debt instrument

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock ($0.01 par value) CARR New York Stock Exchange
• $500 million — agent, facilitating borrowings of up to $500 million (the "Credit Agreement"). Except as oth

Filing Documents

• carr-20240517.htm (8-K) — 38KB
• carrier-364xdayrcfcreditag.htm (EX-10.1) — 807KB
• 0001783180-24-000049.txt ( ) — 1149KB
• carr-20240517.xsd (EX-101.SCH) — 3KB
• carr-20240517_def.xml (EX-101.DEF) — 7KB
• carr-20240517_lab.xml (EX-101.LAB) — 29KB
• carr-20240517_pre.xml (EX-101.PRE) — 16KB
• carr-20240517_htm.xml (XML) — 5KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On May 17, 2024, Carrier Global Corporation (the "Company") refinanced and replaced a Prior Credit Agreement (as defined below) by entering into a 364-day senior unsecured revolving credit agreement among the Company and Carrier Intercompany Lending Designated Activity Company as borrowers, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent, facilitating borrowings of up to $500 million (the "Credit Agreement"). Except as otherwise described herein, the terms of the Credit Agreement are substantially similar to the Prior Credit Agreement. The Credit Agreement refinanced and replaced the Prior Credit Agreement, and will support the cash requirements of the Company. Borrowings under the Credit Agreement may be made in either U.S. Dollars or Euros. For U.S. Dollar borrowings, interest can be charged at either the Term SOFR Rate plus 0.10% and a ratings-based margin, or alternatively at the Alternate Base Rate plus a ratings-based margin. Euro borrowings bear interest at the Adjusted EURIBOR Rate plus a ratings-based margin. The Credit Agreement contains customary representations and warranties for investment grade financings. The Credit Agreement also contains (i) certain customary affirmative covenants, including those that impose certain reporting and/or performance obligations on the Company, (ii) certain customary negative covenants that generally restrict, subject to various exceptions, the Company from taking certain actions, including, without limitation, incurring certain liens and consummating certain fundamental changes, (iii) a financial covenant in the form of a consolidated leverage ratio, (iv) customary events of default (including a change of control) for financings of this type and (v) a term-out option to extend the maturity date for any principal outstanding on the Scheduled Maturity Date by one year subject to payment of a 1.00% term-out premium and other customary

02 Termination of a Material Definitive Agreement

Item 1.02 Termination of a Material Definitive Agreement. Simultaneous with the entry into the Credit Agreement, the Company terminated its existing 364-day senior unsecured revolving credit agreement, dated as of May 19, 2023 (the "Prior Credit Agreement") among the Company and Carrier Intercompany Lending Designated Activity Company as borrowers, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent, which provided for a $500 million senior unsecured 364-day revolving credit facility. Section 2—Financial Information Item 2.03. Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant. The information set forth under Item 1.01 above is incorporated by reference into this Item 2.03. Section 9—Financial Statements and Exhibits

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Exhibit Description 10.1 364-Day Credit Agreement, dated as of May 17 , 2024, among Carrier Global Corporation and Carrier Intercompany Lending Designated Activity Company as borrowers, the lenders party thereto, and JPMorgan Chase Bank, N.A., as administrative agent. 104 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CARRIER GLOBAL CORPORATION (Registrant) Date: May 17, 2024 By: / S / PATRICK GORIS Patrick Goris Senior Vice President and Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR