Otis Worldwide (OTIS) issued, on November 5, 2026, $500 million in notes (debt securities) with an interest rate of 5.825% per year, maturing on November 5, 2036. Net proceeds, estimated at about $495.3 million after underwriting discounts and offering expenses, will be used, together with cash on hand, to repay at maturity the 2.293% notes due April 5, 2027. As of September 30, 2026, $500 million of those notes was outstanding.
Interest will be paid on May 5 and November 5 of each year, beginning on May 5, 2027. The notes are unsecured, unsubordinated obligations, ranking equally in right of payment with the company's other unsecured debt. They were issued in minimum denominations of $2,000, with integral multiples of $1,000.
Before August 5, 2036, Otis may redeem the notes, in whole or in part, at their principal amount plus a make-whole premium calculated under the terms of the indenture, plus accrued interest. From that date, the redemption price will be 100% of the principal amount plus accrued interest. In the event of a change of control that meets the conditions set out in the indenture, holders may require the repurchase of the notes at 101% of the principal amount plus accrued interest.
The offering had Citigroup Global Markets, Goldman Sachs and HSBC Securities (USA) as representatives of the underwriters. The debt agreement imposes restrictions on the creation of new liens on assets, on significant structural changes and on sale-leaseback transactions.
