United Technologies Closes Debt Offer - Analyst Blog

By Nidhi Binani,

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United Technologies Corp. ( UTX ) recently announced the final results of its debt offering for outstanding Senior Notes due 2015, Senior Notes due 2016, and Senior Notes due 2019. The company agreed to purchase all the tendered notes that were validly tendered subject to certain terms and conditions.

The Senior Notes due 2016 and the Senior Notes due 2019 were issued by Goodrich Corporation, a wholly owned-subsidiary of United Technologies, while the Senior Notes due 2015 were issued by the company itself. The company also announced that the principal amount validly tendered for the Senior Notes were approximately $673.5 million for the 2015 Notes, $102.9 million for the 2016 Notes and $97.8 million for the 2019 Notes, aggregating $874.2 million.

The Goldman Sachs Group, Inc. ( GS ) served as the Lead Dealer Manager for the offering.

In the last reported quarter, United Technologies had a long-term outstanding debt of $21,572 million with cash and cash equivalents totaling $4,767 million. The debt tender is a strategic move to strengthen its balance sheet.

Based in Hartford, Conn, United Technologies provides high-end technology products and services to the building systems and aerospace industries worldwide. The company is a diversified business conglomerate serving various end markets, such as aerospace, defense and commercial construction.

The operations of the company are primarily classified into two principal businesses: commercial and aerospace. Under its commercial business, the company has Otis elevators and escalators and the UTC Climate, Controls & Security division which combined the former Carrier and UTC Fire & Security divisions. The aerospace business of the company consists of Sikorsky aircraft and the UTC Propulsion & Aerospace Systems, which includes UTC Aerospace Systems and Pratt & Whitney divisions.

United Technologies currently caries a Zacks Rank #3 (Hold). Other companies in the industry that are worth mentioning include I TT Corporation ( ITT ) and Compass Diversified Holdings ( CODI ), both carrying a Zacks Rank #2 (Buy).

COMPASS DIVERSF (CODI): Free Stock Analysis Report

GOLDMAN SACHS (GS): Free Stock Analysis Report

ITT CORP (ITT): Free Stock Analysis Report

UTD TECHS CORP (UTX): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: CODI , GS , ITT , UTX

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