Carrier Global Corporation (NYSE:CARR) today issued a conditional notice of redemption for its 4.375% Euro Notes due in 2025, with a redemption date set for November 8, 2024. The company plans to redeem all €750 million of the outstanding notes.
The redemption price will be the greater of the sum of the present values of the remaining scheduled payments of principal and interest, discounted to the redemption date at the comparable government bond rate plus 20 basis points, minus interest accrued to the redemption date, or 100% of the principal amount of the notes, plus accrued and unpaid interest to the redemption date.
To fund this redemption, Carrier Global commenced a private offering of €750 million aggregate principal amount of euro-denominated notes due in 2037, alongside available cash on hand. This offering, initiated today, targets qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S of the Securities Act of 1933.
The new notes being offered have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The offering is contingent on market conditions and other factors.
The planned redemption of the 2025 notes is subject to the successful completion of this new offering or another financing arrangement that satisfies the company's requirements. The announcement made today does not constitute a notice of redemption for the 2025 notes but fulfills the company's obligation to inform the holders of the conditional redemption plan based on the outcomes of the ongoing private offering.
In other recent news, Carrier Global Corporation reported robust third-quarter earnings, with sales increasing by 21% to $6 billion and organic sales growing by 4%. The company's HVAC segment experienced a 26% increase in sales, largely due to the acquisition of Viessmann Climate Solutions. Adjusted EPS from continuing operations was $0.77, a 3% increase year-over-year. Baird maintained an Outperform rating on Carrier Global but reduced the price target to $86.00 from $88.00, while Oppenheimer also maintained an Outperform rating and $88.00 price target for the company.
Mizuho, on the other hand, held Carrier Global at Neutral with a $78 target. These recent developments underscore Carrier Global's strong performance and potential for continued growth. The company anticipates reported sales of approximately $22.5 billion for 2024, with adjusted EPS guidance set at $2.50. Furthermore, Carrier Global repurchased $400 million in shares in Q3 and plans to reach $1 billion in buybacks by year's end.
InvestingPro Insights
Carrier Global Corporation's (NYSE:CARR) strategic move to refinance its debt aligns with its overall financial management approach. According to InvestingPro data, the company operates with a moderate level of debt, which is reflected in its current financial restructuring efforts.
Carrier's market capitalization stands at $66.14 billion, underlining its significant presence in the Building Products industry. The company's revenue for the last twelve months as of Q3 2024 was $24.8 billion, with a notable revenue growth of 25.64% over the same period. This growth trajectory supports Carrier's ability to manage its debt obligations effectively.
InvestingPro Tips highlight that Carrier has raised its dividend for 4 consecutive years, demonstrating a commitment to shareholder returns alongside its debt management strategy. The company's dividend yield is currently 1.03%, with a dividend growth of 2.7% in the last twelve months.
It's worth noting that Carrier's P/E ratio of 43.39 suggests the stock is trading at a high earnings multiple. However, this should be considered in the context of the company's strong financial performance and market position.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Carrier Global Corporation, providing a deeper insight into the company's financial health and market position.
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