Trane Technologies plcTT
Trane Technologies plc Debt Disclosure
DEBT AND CREDIT FACILITIES
At December 31, Short-term borrowings and current maturities of long-term debt consisted of the following:
| In millions | 2025 | 2024 | ||||||||||||
| Debentures with put feature | $ | 293.1 | $ | 295.0 | ||||||||||
7.200% Debentures due June 2025 | — | 7.5 | ||||||||||||
6.480% Senior Notes due June 2025 | — | 149.7 | ||||||||||||
3.500% Senior Notes due March 2026 | 399.9 | — | ||||||||||||
| Total | $ | 693.0 | $ | 452.2 | ||||||||||
The Company's short-term obligations primarily consist of debentures with put features and current maturities of long-term debt. The weighted-average interest rate for Short-term borrowings and current maturities of long-term debt at December 31, 2025 and 2024 was 4.7% and 6.4%, respectively.
Commercial Paper Program
The Company uses borrowings under its commercial paper program for general corporate purposes. The maximum aggregate amount of unsecured commercial paper notes available to be issued, on a private placement basis, is $2.0 billion as of December 31, 2025. The Company may issue notes from time to time through Trane Technologies HoldCo Inc. or Trane Technologies Financing Limited. Each of Trane Technologies plc, Trane Technologies Irish Holdings Unlimited Company, Trane Technologies Lux International Holding Company S.à.r.l., Trane Technologies Americas Holding Corporation, Trane Technologies Global Holding II Company Limited, Trane Technologies Company LLC, Trane Technologies HoldCo Inc. and Trane Technologies Financing Limited provided irrevocable and unconditional guarantees for any notes issued. The Company had no commercial paper outstanding at December 31, 2025 and December 31, 2024.
Debentures with Put Feature
At both December 31, 2025 and December 31, 2024, the Company had $293.1 million and $295.0 million of fixed rate debentures, respectively, which contain a put feature that the holders may exercise on each anniversary of the issuance date. If exercised, the Company is obligated to repay in whole or in part, at the holder's option, the outstanding principal amount of the debentures plus accrued and unpaid interest. If these options are not exercised, the final contractual maturity dates would range between 2027 and 2028. Holders had the option to elect to exercise puts up to $37.2 million for settlement in February 2025 and $256.0 million for settlement in November 2025. During the year ended December 31, 2025, no material amount of puts were elected to be exercised. During the year ended December 31, 2024, no puts were exercised.
At December 31, long-term debt excluding current maturities consisted of:
| In millions | 2025 | 2024 | ||||||||||||
3.500% Senior Notes due 2026 | $ | — | $ | 399.4 | ||||||||||
3.750% Senior Notes due 2028 | 548.5 | 547.9 | ||||||||||||
3.800% Senior Notes due 2029 | 747.8 | 747.1 | ||||||||||||
5.250% Senior Notes due 2033 | 694.7 | 694.0 | ||||||||||||
5.100% Senior Notes due 2034 | 494.9 | 494.3 | ||||||||||||
5.750% Senior Notes due 2043 | 495.9 | 495.7 | ||||||||||||
4.650% Senior Notes due 2044 | 296.9 | 296.7 | ||||||||||||
4.300% Senior Notes due 2048 | 296.9 | 296.7 | ||||||||||||
4.500% Senior Notes due 2049 | 346.5 | 346.3 | ||||||||||||
| Total | $ | 3,922.1 | $ | 4,318.1 | ||||||||||
Scheduled maturities of long-term debt, including current maturities, as of December 31, 2025 are as follows:
| In millions | |||||
| 2026 | $ | 693.0 | |||
| 2027 | — | ||||
| 2028 | 548.5 | ||||
| 2029 | 747.8 | ||||
| 2030 | — | ||||
| Thereafter | 2,625.8 | ||||
| Total | $ | 4,615.1 | |||
Issuance of Senior Notes
In June 2024, the Company, through its wholly-owned subsidiary Trane Technologies Financing Limited, issued $500.0 million aggregate principal amount of 5.100% Senior Notes due 2034. The notes are guaranteed by each of Trane Technologies plc, Trane Technologies Global Holding II Company Limited, Trane Technologies Americas Holding Corporation, Trane Technologies Lux International Holding Company S.a.r.l., Trane Technologies Irish Holdings Unlimited Company, Trane Technologies Company LLC and Trane Technologies Holdco Inc. The Company has the option to redeem the notes in whole or in part at any time prior to their stated maturity date at redemption prices set forth in the indenture agreement. The notes are subject to certain customary covenants, however, none of these covenants are considered restrictive to the Company's operations. The net proceeds from the offering were used to purchase short-term investments of $450.0 million that matured in October 2024. The net proceeds of the short-term investments were used to fund the repayment of the $500.0 million aggregate principal amount of the outstanding 3.550% Senior Notes that matured in November 2024, including payment of fees, expenses, and accrued interest in connection therewith.
Other Credit Facilities
On May 27, 2025, the Company entered into a $1.0 billion senior unsecured revolving credit facility with a term that ends in May 2030 and terminated its $1.0 billion credit facility that would have expired in June 2026. As a result, the Company maintains two $1.0 billion senior unsecured revolving credit facilities, one of which matures in April 2027 and the other which matures in May 2030 (collectively, the Facilities), through its wholly-owned subsidiaries, Trane Technologies HoldCo Inc. and Trane Technologies Financing Limited (collectively, the Borrowers).
The Facilities provide support for the Company's commercial paper program and can be used for working capital and other general corporate purposes. Trane Technologies plc, Trane Technologies Irish Holdings Unlimited Company, Trane Technologies Lux International Holding Company S.à.r.l., Trane Technologies Americas Holding Corporation, Trane Technologies Global Holding II Company Limited, and Trane Technologies Company LLC each provide irrevocable and unconditional guarantees for these Facilities. In addition, each Borrower will guarantee the obligations under the Facilities of the other Borrowers. Total commitments of $2.0 billion were unused at December 31, 2025 and December 31, 2024.
Fair Value of Debt
The fair value of the Company's debt instruments at both December 31, 2025 and December 31, 2024 was $4.6 billion. The Company measures the fair value of its debt instruments for disclosure purposes based upon observable market prices quoted on public exchanges for similar assets. These fair value inputs are considered Level 2 within the fair value hierarchy. See Note 9, "Fair Value Measurements" for information on the fair value hierarchy.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 5, 2026 | Showing above |
| 2024 | Feb 6, 2025 | |
| 2023 | Feb 8, 2024 | |
| 2022 | Feb 10, 2023 | |
| 2021 | Feb 7, 2022 | |
| 2020 | Feb 9, 2021 | |
| 2019 | Feb 18, 2020 | |
| 2018 | Feb 12, 2019 | |
| 2017 | Feb 12, 2018 | |
| 2016 | Feb 13, 2017 | |
| 2015 | Feb 12, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.