Otis Worldwide Issues $1.25B in Notes
Ticker: OTIS · Form: 8-K · Filed: Nov 14, 2024 · CIK: 1781335
Sentiment: neutral
Topics: debt-issuance, financing
TL;DR
Otis just dropped $1.25B in new debt for 2026 and 2031 maturities.
AI Summary
Otis Worldwide Corp. announced on November 12, 2024, the issuance of two series of notes: $318 million in Zero% Notes due 2026 and $934 million in Zero% Notes due 2031. This action constitutes the creation of a direct financial obligation for the registrant.
Why It Matters
Otis Worldwide Corp. has taken on new debt, which could impact its financial leverage and future investment capacity.
Risk Assessment
Risk Level: medium — The issuance of significant new debt increases the company's financial leverage and potential interest rate risk.
Key Numbers
- $318M — Zero% Notes due 2026 (Debt issuance)
- $934M — Zero% Notes due 2031 (Debt issuance)
- $1.252B — Total Notes Issued (Combined principal of new debt)
Key Players & Entities
- Otis Worldwide Corp. (company) — Registrant
- $318 million (dollar_amount) — Principal amount of Zero% Notes due 2026
- $934 million (dollar_amount) — Principal amount of Zero% Notes due 2031
- November 12, 2024 (date) — Date of earliest event reported
FAQ
What is the purpose of issuing these new notes?
The filing does not explicitly state the purpose for issuing the Zero% Notes due 2026 and 2031.
What are the interest rates on the new notes?
The notes are described as 'Zero%' notes, indicating no coupon payments.
When were these notes issued?
The earliest event reported in the filing occurred on November 12, 2024.
What is the total principal amount of the notes issued?
The total principal amount is $318 million plus $934 million, totaling $1.252 billion.
What is the maturity date for each series of notes?
One series matures in 2026 and the other matures in 2031.
Filing Stats: 1,556 words · 6 min read · ~5 pages · Grade level 10.7 · Accepted 2024-11-14 16:21:58
Key Financial Figures
- $0.01 — nge on which registered Common Stock ($0.01 par value) OTIS New York Stock Exch
- $600,000,000 — n offering (the " Dollar Offering ") of $600,000,000 aggregate principal amount of 5.125% No
- $1.3 billion — 5, 2025 (the " 2025 Notes "), of which $1.3 billion principal amount is currently outstandi
Filing Documents
- ny20038264x7_8k.htm (8-K) — 47KB
- ny20038264x7_ex1-1.htm (EX-1.1) — 192KB
- ny20038264x7_ex1-2.htm (EX-1.2) — 227KB
- ny20038264x7_8kimg001.jpg (GRAPHIC) — 4KB
- 0001140361-24-046925.txt ( ) — 743KB
- otis-20241112.xsd (EX-101.SCH) — 4KB
- otis-20241112_def.xml (EX-101.DEF) — 17KB
- otis-20241112_lab.xml (EX-101.LAB) — 26KB
- otis-20241112_pre.xml (EX-101.PRE) — 20KB
- ny20038264x7_8k_htm.xml (XML) — 7KB
03
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information under Item 8.01 is incorporated herein by reference. Section 8 – Other Events
01
Item 8.01. Other Events. Dollar Offering On November 12 , 20 24 , Otis Worldwide Corporation (" Otis ") priced an offering (the " Dollar Offering ") of $600,000,000 aggregate principal amount of 5.125% Notes due 2031 (the " Otis Notes "). In connection with the Dollar Offering, Otis entered into an Underwriting Agreement, dated November 12 , 20 24 (the " Otis Underwriting Agreement "), with HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and SMBC Nikko Securities America, Inc., as representatives of the underwriters named in Schedule A thereto (the " Otis Underwriters "), pursuant to which Otis agreed to sell, and the Otis Underwriters agreed to purchase, the Otis Notes, The Otis Notes are being issued under the base indenture, dated as of February 27, 2020, as supplemented by a supplemental indenture relating to the Otis Notes, to be dated on or about November 19, 2024, in each case between Otis and The Bank of New York Mellon Trust Company, N.A., as trustee. The issuance and sale of the Otis Notes is expected to close on November 19 , 20 24 . The net proceeds to Otis from the sale of the Otis Notes, after the Otis Underwriters' discount and offering expenses, are estimated to be approximately $ 594.5 million . Otis intends to use the net proceeds from this offering, together with cash on hand, to fund the repayment at maturity of its 2.056% notes due April 5, 2025 (the " 2025 Notes "), of which $1.3 billion principal amount is currently outstanding. The Otis Notes will mature on November 19, 2031. The Otis Notes will be unsecured, unsubordinated obligations of Otis, respectively and will rank equally in right of payment with all of Otis' respective existing and future unsecured, unsubordinated indebtedness. The Otis Notes are
Financial Statements and Exhibits
Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Exhibit Description 1.1 Underwriting Agreement, dated November 12 , 20 24 , among Otis Worldwide Corporation and HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and SMBC Nikko Securities America, Inc., as representatives of the other underwriters named in Schedule A thereto. 1.2 Underwriting Agreement, dated November 13 , 20 24 , among Highland Holdings S. r.l., Otis Worldwide Corporation and HSBC Continental Europe, J.P. Morgan Securities plc, Morgan Stanley & Co. International plc, SMBC Bank International plc and the other underwriters named in Schedule A thereto. 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. OTIS WORLDWIDE CORPORATION (Registrant) Date: November 14 , 20 24 By: /s/ Cristina Mndez Cristina Mndez Executive Vice President & Chief Financial Officer