[8-K] Otis Worldwide Corporation Reports Material Event
Otis Worldwide Corporation entered into a new unsecured $1,500 million revolving credit agreement dated August 8, 2025, which matures on August 8, 2030, and replaces the prior facility that had been scheduled to expire March 10, 2028. The facility names Otis Intercompany Lending Designated Activity Company as a subsidiary borrower, is administered by JPMorgan Chase Bank, N.A., is guaranteed by Otis for subsidiary borrowings, and is available for general corporate purposes.
U.S. dollar borrowings may be at term SOFR or a base rate and euro borrowings at EURIBO or daily simple ESTR, with initial margins of 1.125% for term SOFR/EURIBO/ESTR and 0.125% for base rate borrowings; margins can fluctuate with Otis’ public debt rating. The agreement permits an aggregate upsize of up to $500 million and contains customary affirmative and negative covenants, including a consolidated leverage ratio financial covenant; breaches could lead to acceleration or termination of commitments.
Otis Worldwide Corporation ha stipulato un nuovo contratto di credito revolving non garantito da $1.500 milioni in data 8 agosto 2025, che scade l'8 agosto 2030, sostituendo la precedente linea che era prevista in scadenza il 10 marzo 2028. La struttura contempla Otis Intercompany Lending Designated Activity Company come prenditore sussidiario, 猫 amministrata da JPMorgan Chase Bank, N.A., 猫 garantita da Otis a copertura degli indebitamenti della sussidiaria ed 猫 disponibile per scopi aziendali generali.
I finanziamenti in dollari USA possono essere a term SOFR o a tasso base e quelli in euro a EURIBO o a ESTR semplice giornaliero, con margini iniziali di 1.125% per term SOFR/EURIBO/ESTR e di 0.125% per i finanziamenti a tasso base; i margini possono variare in funzione del rating del debito pubblico di Otis. L'accordo prevede un possibile aumento complessivo fino a $500 milioni e contiene i consueti covenant positivi e negativi, incluso un covenant finanziario sul rapporto di leva consolidato; eventuali inosservanze potrebbero comportare l'accelerazione o la cessazione degli impegni.
Otis Worldwide Corporation celebr贸 un nuevo acuerdo de cr茅dito revolvente no garantizado por $1,500 millones con fecha 8 de agosto de 2025, que vence el 8 de agosto de 2030, y que sustituye la facilidad anterior que ten铆a prevista su expiraci贸n el 10 de marzo de 2028. La facilidad designa a Otis Intercompany Lending Designated Activity Company como prestataria subsidiaria, est谩 administrada por JPMorgan Chase Bank, N.A., est谩 garantizada por Otis respecto de los pr茅stamos de la subsidiaria y est谩 disponible para fines corporativos generales.
Los pr茅stamos en d贸lares estadounidenses pueden ser a term SOFR o a una tasa base y los pr茅stamos en euros a EURIBO o a ESTR simple diario, con m谩rgenes iniciales de 1.125% para term SOFR/EURIBO/ESTR y de 0.125% para los pr茅stamos a tasa base; los m谩rgenes pueden fluctuar conforme a la calificaci贸n de deuda p煤blica de Otis. El acuerdo permite una ampliaci贸n agregada de hasta $500 millones y contiene los habituales convenants afirmativos y negativos, incluido un covenant financiero sobre la ratio de apalancamiento consolidada; los incumplimientos podr铆an derivar en la aceleraci贸n o la terminaci贸n de los compromisos.
Otis Worldwide Corporation電� 2025雲� 8鞗� 8鞚检瀽搿� 齑濎暋 $1,500氚彪鞚� 氍措嫶氤� 毽臣牍� 鞁犾毄瓿勳暯鞚� 觳搓舶頄堨溂氅�, 頃措嫻 瓿勳暯鞚� 2030雲� 8鞗� 8鞚� 毵岅赴鞚搓碃 鞗愲灅 2028雲� 3鞗� 10鞚� 毵岅赴搿� 鞓堨爼霅橃柎 鞛堧崢 旮办〈 鞁滌劋鞚� 雽�觳错暕雼堧嫟. 頃措嫻 鞁滌劋鞚� 鞛愴殞靷� 彀＜搿� Otis Intercompany Lending Designated Activity Company毳� 歆�鞝曧晿瓿� 鞛堨溂氅�, JPMorgan Chase Bank, N.A.臧� 甏�毽晿瓿� 鞛愴殞靷潣 彀瀰鞐� 雽�頃� Otis臧� 氤挫頃橂┌ 鞚茧皹 旮办梾 氇╈爜鞙茧 靷毄 臧�電ロ暕雼堧嫟.
氙戈淡 雼煬 彀瀰鞚� term SOFR 霕愲姅 旮办旮堧Μ(base rate)搿�, 鞙犽 彀瀰鞚� EURIBO 霕愲姅 鞚缄皠 雼Μ ESTR搿� 臧�電ロ晿氅� 齑堦赴 毵堨鞚� term SOFR/EURIBO/ESTR鞚� 瓴届毎 1.125%, 旮办旮堧Μ 彀瀰鞚� 瓴届毎 0.125%鞛呺媹雼�. 毵堨鞚� Otis鞚� 瓿店车 攵�毂� 霌标笁鞐� 霐半澕 氤�霃欕悹 靾� 鞛堨姷雼堧嫟. 鞚� 瓿勳暯鞚� 齑濎暋 旮办 斓滊寑 $500氚彪旯岇 歃濎暋鞚� 項堨毄頃橂┌, 韱奠儊鞝侅澑 旮嶌爼鞝伮冯秬鞝曥爜 鞎届爼(covenant)鞚� 韽暔頃橁碃 鞛堦碃, 韱淀暕 霠堧矂毽 牍勳湪鞐� 甏�頃� 鞛 鞎届爼霃� 韽暔霅橃柎 鞛堨姷雼堧嫟. 鞎届爼 鞙勲皹 鞁� 鞎届爼鞚� 臧�靻嶍檾 霕愲姅 頃挫搿� 鞚挫柎歆� 靾� 鞛堨姷雼堧嫟.
Otis Worldwide Corporation a conclu un nouvel accord de cr茅dit renouvelable non garanti de 1 500 millions de dollars en date du 8 ao没t 2025, arrivant 脿 茅ch茅ance le 8 ao没t 2030, et rempla莽ant l'茅tablissement ant茅rieur dont l'expiration 茅tait pr茅vue le 10 mars 2028. L_facilit茅 d茅signe Otis Intercompany Lending Designated Activity Company comme emprunteur filiale, est administr茅e par JPMorgan Chase Bank, N.A., est garantie par Otis pour les emprunts de la filiale et est disponible pour des besoins g茅n茅raux de l'entreprise.
Les emprunts en dollars US peuvent 锚tre au term SOFR ou 脿 un taux de base et les emprunts en euros au EURIBO ou 脿 l'ESTR simple quotidien, avec des marges initiales de 1.125% pour term SOFR/EURIBO/ESTR et de 0.125% pour les emprunts au taux de base ; les marges peuvent fluctuer en fonction de la notation de la dette publique d'Otis. L'accord permet un accroissement global allant jusqu'脿 $500 millions et contient les engagements positifs et n茅gatifs usuels, y compris un covenant financier relatif au ratio d'endettement consolid茅 ; des manquements pourraient entra卯ner l'acc茅l茅ration ou la r茅siliation des engagements.
Die Otis Worldwide Corporation hat am 8. August 2025 einen neuen unbesicherten revolvierenden Kreditvertrag 眉ber $1.500 Millionen abgeschlossen, der am 8. August 2030 f盲llig wird und die fr眉here Einrichtung ersetzt, die urspr眉nglich am 10. M盲rz 2028 auslaufen sollte. Die Fazilit盲t benennt Otis Intercompany Lending Designated Activity Company als Tochterdarlehensnehmer, wird von JPMorgan Chase Bank, N.A. verwaltet, ist f眉r Tochtergesellschaftsdarlehen von Otis garantiert und steht f眉r allgemeine Unternehmenszwecke zur Verf眉gung.
US-Dollar-Borrowings k枚nnen zu term SOFR oder einem Basissatz erfolgen, Euro-Borrowings zu EURIBO oder t盲glichem einfachen ESTR, mit anf盲nglichen Margen von 1.125% f眉r term SOFR/EURIBO/ESTR und 0.125% f眉r Basissatzdarlehen; die Margen k枚nnen mit der 枚ffentlichen Schuldenbewertung von Otis schwanken. Der Vertrag erlaubt eine aggregierte Aufstockung um bis zu $500 Millionen und enth盲lt die 眉blichen positiven und negativen Covenants, einschlie脽lich einer finanziellen Verpflichtung bez眉glich der konsolidierten Verschuldungskennzahl; Verst枚脽e k枚nnten zu Beschleunigung oder Beendigung der Zusagen f眉hren.
- $1,500 million revolving credit facility secured, providing committed liquidity maturing August 8, 2030
- Accordion option up to $500 million allowing Otis to increase the facility size if needed
- No early termination penalties were incurred when the prior credit agreement was terminated
- Relatively low initial margins of 1.125% (term SOFR/EURIBO/ESTR) and 0.125% (base rate) at signing
- Consolidated leverage ratio covenant could restrict financing flexibility and, if breached, permit acceleration or termination of commitments
- Floating-rate exposure (term SOFR, EURIBO, daily simple ESTR) subjects interest costs to market rate volatility
- Affirmative and negative covenants limit liens and sale-leaseback transactions, which may constrain certain strategic actions
Insights
TL;DR: Otis secured a $1.5B revolving facility to 2030 with low initial margins and a $500M accordion, maintaining liquidity while preserving typical covenant protections.
The new credit agreement materially refreshes Otis’ short-to-medium term liquidity profile by replacing a facility that expired in 2028 with one maturing in 2030, preserving access to committed capital for general corporate purposes. Initial margins of 1.125% (term SOFR/EURIBO/ESTR) and 0.125% (base rate) are modest and pricing can move with the company’s public debt rating, so cheap funding today could become costlier if ratings weaken. The upsize option provides additional flexibility without immediately increasing drawn debt. Overall impact is neutral-to-moderately positive for liquidity but dependent on covenant compliance and market rates.
TL;DR: The agreement reduces near-term refinancing risk and adds an accordion, but introduces floating-rate exposure and a consolidated leverage covenant that could constrain flexibility.
The credit agreement contains customary affirmative and negative covenants restricting liens and sale-leaseback transactions and imposes a maximum consolidated leverage ratio. Those constraints are standard but material: violation would permit lenders to accelerate repayment and terminate commitments. Additionally, use of term SOFR, EURIBO or ESTR ties interest expense to market rates, increasing earnings sensitivity to rate moves. No early termination penalties were incurred when the prior facility was replaced, which mitigates transaction cost risk.
Otis Worldwide Corporation ha stipulato un nuovo contratto di credito revolving non garantito da $1.500 milioni in data 8 agosto 2025, che scade l'8 agosto 2030, sostituendo la precedente linea che era prevista in scadenza il 10 marzo 2028. La struttura contempla Otis Intercompany Lending Designated Activity Company come prenditore sussidiario, 猫 amministrata da JPMorgan Chase Bank, N.A., 猫 garantita da Otis a copertura degli indebitamenti della sussidiaria ed 猫 disponibile per scopi aziendali generali.
I finanziamenti in dollari USA possono essere a term SOFR o a tasso base e quelli in euro a EURIBO o a ESTR semplice giornaliero, con margini iniziali di 1.125% per term SOFR/EURIBO/ESTR e di 0.125% per i finanziamenti a tasso base; i margini possono variare in funzione del rating del debito pubblico di Otis. L'accordo prevede un possibile aumento complessivo fino a $500 milioni e contiene i consueti covenant positivi e negativi, incluso un covenant finanziario sul rapporto di leva consolidato; eventuali inosservanze potrebbero comportare l'accelerazione o la cessazione degli impegni.
Otis Worldwide Corporation celebr贸 un nuevo acuerdo de cr茅dito revolvente no garantizado por $1,500 millones con fecha 8 de agosto de 2025, que vence el 8 de agosto de 2030, y que sustituye la facilidad anterior que ten铆a prevista su expiraci贸n el 10 de marzo de 2028. La facilidad designa a Otis Intercompany Lending Designated Activity Company como prestataria subsidiaria, est谩 administrada por JPMorgan Chase Bank, N.A., est谩 garantizada por Otis respecto de los pr茅stamos de la subsidiaria y est谩 disponible para fines corporativos generales.
Los pr茅stamos en d贸lares estadounidenses pueden ser a term SOFR o a una tasa base y los pr茅stamos en euros a EURIBO o a ESTR simple diario, con m谩rgenes iniciales de 1.125% para term SOFR/EURIBO/ESTR y de 0.125% para los pr茅stamos a tasa base; los m谩rgenes pueden fluctuar conforme a la calificaci贸n de deuda p煤blica de Otis. El acuerdo permite una ampliaci贸n agregada de hasta $500 millones y contiene los habituales convenants afirmativos y negativos, incluido un covenant financiero sobre la ratio de apalancamiento consolidada; los incumplimientos podr铆an derivar en la aceleraci贸n o la terminaci贸n de los compromisos.
Otis Worldwide Corporation電� 2025雲� 8鞗� 8鞚检瀽搿� 齑濎暋 $1,500氚彪鞚� 氍措嫶氤� 毽臣牍� 鞁犾毄瓿勳暯鞚� 觳搓舶頄堨溂氅�, 頃措嫻 瓿勳暯鞚� 2030雲� 8鞗� 8鞚� 毵岅赴鞚搓碃 鞗愲灅 2028雲� 3鞗� 10鞚� 毵岅赴搿� 鞓堨爼霅橃柎 鞛堧崢 旮办〈 鞁滌劋鞚� 雽�觳错暕雼堧嫟. 頃措嫻 鞁滌劋鞚� 鞛愴殞靷� 彀＜搿� Otis Intercompany Lending Designated Activity Company毳� 歆�鞝曧晿瓿� 鞛堨溂氅�, JPMorgan Chase Bank, N.A.臧� 甏�毽晿瓿� 鞛愴殞靷潣 彀瀰鞐� 雽�頃� Otis臧� 氤挫頃橂┌ 鞚茧皹 旮办梾 氇╈爜鞙茧 靷毄 臧�電ロ暕雼堧嫟.
氙戈淡 雼煬 彀瀰鞚� term SOFR 霕愲姅 旮办旮堧Μ(base rate)搿�, 鞙犽 彀瀰鞚� EURIBO 霕愲姅 鞚缄皠 雼Μ ESTR搿� 臧�電ロ晿氅� 齑堦赴 毵堨鞚� term SOFR/EURIBO/ESTR鞚� 瓴届毎 1.125%, 旮办旮堧Μ 彀瀰鞚� 瓴届毎 0.125%鞛呺媹雼�. 毵堨鞚� Otis鞚� 瓿店车 攵�毂� 霌标笁鞐� 霐半澕 氤�霃欕悹 靾� 鞛堨姷雼堧嫟. 鞚� 瓿勳暯鞚� 齑濎暋 旮办 斓滊寑 $500氚彪旯岇 歃濎暋鞚� 項堨毄頃橂┌, 韱奠儊鞝侅澑 旮嶌爼鞝伮冯秬鞝曥爜 鞎届爼(covenant)鞚� 韽暔頃橁碃 鞛堦碃, 韱淀暕 霠堧矂毽 牍勳湪鞐� 甏�頃� 鞛 鞎届爼霃� 韽暔霅橃柎 鞛堨姷雼堧嫟. 鞎届爼 鞙勲皹 鞁� 鞎届爼鞚� 臧�靻嶍檾 霕愲姅 頃挫搿� 鞚挫柎歆� 靾� 鞛堨姷雼堧嫟.
Otis Worldwide Corporation a conclu un nouvel accord de cr茅dit renouvelable non garanti de 1 500 millions de dollars en date du 8 ao没t 2025, arrivant 脿 茅ch茅ance le 8 ao没t 2030, et rempla莽ant l'茅tablissement ant茅rieur dont l'expiration 茅tait pr茅vue le 10 mars 2028. L_facilit茅 d茅signe Otis Intercompany Lending Designated Activity Company comme emprunteur filiale, est administr茅e par JPMorgan Chase Bank, N.A., est garantie par Otis pour les emprunts de la filiale et est disponible pour des besoins g茅n茅raux de l'entreprise.
Les emprunts en dollars US peuvent 锚tre au term SOFR ou 脿 un taux de base et les emprunts en euros au EURIBO ou 脿 l'ESTR simple quotidien, avec des marges initiales de 1.125% pour term SOFR/EURIBO/ESTR et de 0.125% pour les emprunts au taux de base ; les marges peuvent fluctuer en fonction de la notation de la dette publique d'Otis. L'accord permet un accroissement global allant jusqu'脿 $500 millions et contient les engagements positifs et n茅gatifs usuels, y compris un covenant financier relatif au ratio d'endettement consolid茅 ; des manquements pourraient entra卯ner l'acc茅l茅ration ou la r茅siliation des engagements.
Die Otis Worldwide Corporation hat am 8. August 2025 einen neuen unbesicherten revolvierenden Kreditvertrag 眉ber $1.500 Millionen abgeschlossen, der am 8. August 2030 f盲llig wird und die fr眉here Einrichtung ersetzt, die urspr眉nglich am 10. M盲rz 2028 auslaufen sollte. Die Fazilit盲t benennt Otis Intercompany Lending Designated Activity Company als Tochterdarlehensnehmer, wird von JPMorgan Chase Bank, N.A. verwaltet, ist f眉r Tochtergesellschaftsdarlehen von Otis garantiert und steht f眉r allgemeine Unternehmenszwecke zur Verf眉gung.
US-Dollar-Borrowings k枚nnen zu term SOFR oder einem Basissatz erfolgen, Euro-Borrowings zu EURIBO oder t盲glichem einfachen ESTR, mit anf盲nglichen Margen von 1.125% f眉r term SOFR/EURIBO/ESTR und 0.125% f眉r Basissatzdarlehen; die Margen k枚nnen mit der 枚ffentlichen Schuldenbewertung von Otis schwanken. Der Vertrag erlaubt eine aggregierte Aufstockung um bis zu $500 Millionen und enth盲lt die 眉blichen positiven und negativen Covenants, einschlie脽lich einer finanziellen Verpflichtung bez眉glich der konsolidierten Verschuldungskennzahl; Verst枚脽e k枚nnten zu Beschleunigung oder Beendigung der Zusagen f眉hren.
|
|
|
|
|
(State or other jurisdiction
of incorporation)
|
(Commission
File Number)
|
(I.R.S. Employer
Identification No.)
|
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit
Number
|
Exhibit Description
|
|
10.01
|
Revolving Credit Agreement, dated as of August 8, 2025, by and among Otis Worldwide Corporation, as borrower, Otis Intercompany Lending Designated
Activity Company, as subsidiary borrower, each other subsidiary borrower party thereto, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent and the other parties thereto from time to time.
|
|
1.04
|
Cover Page Interactive Data File – the cover page iXBRL tags are embedded within the Inline XBRL document.
|
|
OTIS WORLDWIDE CORPORATION
|
||
|
(Registrant)
|
||
|
Date: August 8, 2025
|
By:
|
/s/ Cristina Méndez
|
|
Cristina Méndez
|
||
|
Executive Vice President & Chief Financial Officer
|
||
Source:
FAQ
What did Otis (OTIS) report in this 8-K?
When does the new Otis revolving credit facility mature and how large is it?
Can Otis increase the size of the revolver?
What interest rate options and initial margins apply under the new facility?
Did Otis pay any penalty to terminate the prior credit agreement?
What covenant risks are included in the credit agreement?
