Otis Worldwide lands $1.5 billion five-year unsecured revolver

By William Gullotti

Buffalo, N.Y., March 10 – Otis Worldwide Corp. signed a new $1.5 billion unsecured revolving credit facility due March 10, 2028 with JPMorgan Chase Bank, NA as administrative agent on Friday, according to an 8-K filing with the Securities and Exchange Commission.

The new revolver features a $500 million accordion.

Borrowings will bear interest at SOFR, Euribor or ESTR plus a margin ranging from 100 basis points to 150 bps. There is also a commitment fee that ranges from 8 bps to 20 bps.

The margins and fee are determined by the company’s credit ratings.

In addition to serving as administrative agent, JPMorgan is also a joint lead arranger and joint bookrunner with BofA Securities, Inc., Citibank, NA, HSBC Securities (USA) Inc. and Sumitomo Mitsui Banking Corp.

Citi and Sumitomo are also acting as syndication agents along with Bank of America, NA and HSBC Bank USA, NA.

Goldman Sachs Bank USA and Morgan Stanley Bank, NA are the documentation agents.

On the closing date, Otis terminated its previous credit agreement with JPMorgan without penalty. The previous agreement was expected to expire April 3, 2025.

Elevator and escalator maker Otis Worldwide is based in Farmington, Conn.

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