Narrative
Full Description
Project narrative
On May 19, 2023, financial close was reached on a deal in which a syndicate of 26 banks — including Bank of China, New York Branch, ICBC, and Agricultural Bank of China — entered into a senior unsecured €2,300,000,000 (consisting of €1,150,000,000 of Tranche A Commitments and €1,150,000,000 of Tranche B Commitments, under which the Borrowers may obtain Loans in Euros or US Dollarsterm loan credit agreement) delayed draw term loan 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 the acquisition of Viessmann Climate Solutions SE. While Tranche A has a maturity of 18 months, Tranche B has a maturity of 3 years. The interest rate is EURIBOR plus applicable rate based on ratings. The default interest is 2%. The proceeds were used by the borrower for the acquisition of equity interests of Viessmann Climate Solutions SE pursuant to the Acquisition Agreement. While Bank of China (Record ID#105085), Industrial and Commercial Bank of China (ICBC) (Record ID#105086), and Agricultural Bank of China (Record ID#105087) contributed to the loan, other banks also participated, including JPMorgan Chase Bank, N.A., DZ Bank, AG, ING Bank N.V. Dublin Branch, Bank of America, N.A., Credit Agricole Corporate and Investment Bank, Banco Bilbao Vizcaya Argentaria, S.A. (New York Branch), Citibank, N.A., Goldman Sachs Bank USA, HSBC Continental Europe, Truist Bank, Barclays Bank PLC, Morgan Stanley Senior Funding, Bank of China (New York Branch), BNP Paribas, CIBC Bank USA, 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, Wells Fargo Bank, N.A., Bank of Montreal (Chicago Branch), Bayerische Landesbank (New York Branch), Commerzbank AG (New York Branch), and Societe Generale. On January 2, 2024, Carrier Global completed the acquisition of Viessmann Climate Solutions SE.
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 6-month average EURIBOR 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 LIBOR rate in February 2020 (1.25%+3.55%=4.8%). 3. The individual contribution of the 26 lenders to these two USD-denominated revolving credit agreement worth €2.3 billion EUR is unknown. For the time being, AidData has estimated the contributions of Bank of China (New York Branch), ICBC and Agricultural Bank of China by assuming that each lender contributed an equal amount (€88,461,538.462 EUR) to the loan syndicate. 4. The average estimated maturity rate for these two tranches is 2.25 (1.5+3/2) years.