Narrative
Full Description
Project narrative
On February 10, 2020, financial close was reached on a deal in which a syndicate of 26 banks — including Bank of China, New York Branch, and Industrial and Commercial Bank of China Ltd, New York Branch — entered into a $2,000,000,000 USD unsecured revolving credit agreement with Carrier Global Corporation, a Delaware-based multinational company specializing in heating, ventilation, air conditioning (HVAC), refrigeration, fire, and security solutions. The loan facility is intended for general corporate purposes. The maturity of the loan is five years, with a scheduled maturity date of April 3, 2025, and the interest rate is based on LIBOR plus an applicable margin, depending on the borrower’s credit rating. Borrowings under the Revolving Credit Facility are available in U.S. Dollars, Euros and Pounds Sterlin. A commitment fee of 0.125% is charged on unused commitments. As of December 31, 2022, there was no borrowings outstanding under the Revolving Credit Facility. The proceeds were used by the borrower for general corporate purposes, including working capital, capital expenditures, and permitted acquisitions. While Bank of China (Record ID#105079)and ICBC (Record ID#105080)contributed to this loan, other lenders, including JPMorgan Chase Bank, N.A., Bank of America, Citibank, HSBC, Morgan Stanley, UniCredit Bank AG, Goldman Sachs Bank USA, Bank of Montreal, Chicago Branch, BNP Paribas, Deutsche Bank, Intesa Sanpaolo, Mizuho Bank, MUFG Bank, Sumitomo Mitsui Banking Corporation, Wells Fargo N.A., Barclays, Bayerische Landesbank, Commerzbank, Royal Bank of Canada, Societe Generale, Standard Chartered Bank, The Bank of New York Mellon, and Westpac Banking Corporation also participated. On the same day, a term loan was also signed between Carrier Global and the lenders. On June 2, 2020, the Revolving credit agreement was amended. On May 19, 2023, Carrier Global Corporation entered into a $2 billion USD syndicated revolver credit agreement with 22 banks for 5 years (matures on May 19, 2028) and replaced the prior agreement. This loan supports the Company’s commercial paper program and the cash requirements of the Company. For U.S. Dollar borrowings, interest can be charged at either the Term SOFR Rate plus 0.10% and a ratings-based margin. While BOC (Record ID#105081) and ICBC (Record ID#105082) contributed to this loan, the following banks also contributed: JPMorgan Chase Bank, N.A., Bank of America, N.A., Citibank, N.A., HSBC Bank USA, National Association, Barclays Bank PLC, Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., BNP Paribas, Deutsche Bank AG New York Branch, Intesa Sanpaolo S.p.A., New York Branch, Mizuho Bank, Ltd., MUFG Bank, Ltd., Sumitomo Mitsui Banking Corporation, UniCredit Bank AG, New York Branch, Wells Fargo Bank, N.A., Bank of Montreal, Chicago Branch, Bayerische Landesbank, New York Branch, Commerzbank AG, New York Branch, Societe Generale, and Standard Chartered Bank.
Staff comments
1. Carrier Global Corporation is a Delaware-incorporated American multinational heating, ventilation, and air conditioning, refrigeration, and fire and security equipment corporation based in Palm Beach Gardens, Florida. Carrier was origially acquired by United Technologies in 1979, but it was spun off as an independent company 41 years later in 2020. The company is listed on New York Stock Exchange. 2. AidData estimates the interest rate by adding the SOFR rate and the applicable rate based on ratings. Based on the company’s credit ratings in May 2023, 1.25% interest was added to the SOFR rate on May 19 2023 (1.25%+0.1%+5.05%=6.4%). 3. The individual contribution of the 22 lenders to these two USD-denominated revolving credit agreement worth $2 billion USD is unknown. For the time being, AidData has estimated the contributions of Bank of China (New York Branch) and ICBC by assuming that each lender contributed an equal amount ($90,909,090.91 USD) to the loan syndicate.