Spinoff Report
CARR & OTIS: When-Issued Listings Worth Watching
With the upcoming three-way Large Cap Spinoffs at United Technologies Corp. (UTX) on April 3, the new companies Carrier Global Corp. (CARR) and Otis Worldwide Corp. (OTIS) have now listed in the when-issued market and are worth watching at current levels. We've adjusted our post-Spin target prices accordingly given their lower listing prices.

  • Industry-Leading Spins: Carrier Global (CARR - Climate Control Co.) & Otis Worldwide (OTIS - Elevator Co.)
  • Break-Up Data Shows % of Deals that Made Money - Parents (RemainCo): 94% / SpinCos: 78%
  • No Index Selling / Spins Pay Dividends / Distribution Ratio - 0.5:1 for OTIS & 1:1 for CARR
  • Lower When-Issued Pricing Provides Significant Upside to CARR / OTIS Seems Mostly Fair-Valued
  • Spinoff Completes April 3, 2020 / UTX is a Current Spinoff Model Portfolio Holding
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