Carrier enters three credit facilities totaling $2.5 billion, €2.3 billion

By William Gullotti

Buffalo, N.Y., May 25 – Carrier Global Corp. entered three separate credit agreements with JPMorgan Chase Bank, NA as administrative agent on May 19, according to an 8-K filing with the Securities and Exchange Commission on Thursday.

The three facilities comprised a $2 billion five-year revolver, a $500 million 364-day revolver and a €2.3 billion delayed-draw term loan agreement.

Five-year revolver

Borrowings will bear interest at SOFR plus a margin ranging from 100 basis points to 150 bps. There is also a facility fee ranging from 9 bps to 22.5 bps. The margins and fees are determined by the company’s ratings as specifically established by Moody’s Investors Service or S&P Global Ratings.

The revolver is scheduled to mature May 19, 2028 and was used to refinance and replace Carrier’s previous $2 billion revolving credit facility.

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

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

Barclays Bank plc, Goldman Sachs Bank USA and Morgan Stanley Senior Funding, Inc. are the documentation agents.

Delayed-draw term loan

The €2.3 billion facility is divided into two equally sized tranches with differing maturities. Tranche A matures 18 months after the closing date. Tranche B’s maturity is three years after closing.

In each case, borrowings will bear interest at Euribor plus a margin ranging from 100 bps to 150 bps. The facility fee also ranges from 9 bps to 22.5 bps. As with the five-year revolver, the margins and fees are determined by Carrier’s ratings.

Proceeds from the term agreement will be used to partially finance Carrier’s recently announced acquisition of Viessmann Group GmbH & Co. KG.

In addition to acting as administrative agent, JPMorgan is also a joint lead arranger and joint bookrunner with BofA Securities, Inc., Citibank, NA, Goldman Sachs Bank USA and HSBC Continental Europe.

Citi, Goldman Sachs and HSBC are also the documentation agents, with Bank of America, NA as syndication agent.

364-day revolver

The $500 million revolver will only become available to the company upon closing of the aforementioned acquisition.

Interest on this revolver’s borrowings will be the same as those for the five-year revolver. The facility fee, however, ranges from 7 bps to 17.5 bps. The fees and spread are determined in the same manner as the other two facilities.

The agents, joint lead arrangers and joint bookrunners for the 364-day revolver are the same as those in the five-year revolver.

Farmington, Conn.-based Carrier Global is a heating and cooling systems provider.

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