8-KFinancial EventsOther EventsExhibits & Filings

Johnson Controls International plc 8-K Report, Financial Obligation (Dec 28, 2016)

Filed December 28, 2016For Securities:JCI

Summary

Johnson Controls International plc (JCI) filed an 8-K on December 28, 2016, reporting the successful completion of its previously announced offers to exchange outstanding notes issued by its subsidiaries, Johnson Controls, Inc. ("JCI Inc.") and Tyco International Finance S.A. ("TIFSA"), for new notes issued directly by JCI. This exchange offer and related consent solicitation aimed to streamline the company's debt structure following recent corporate actions. The filing details the significant aggregate principal amounts of various existing notes that were tendered and accepted for exchange, resulting in their cancellation. Correspondingly, JCI issued a substantial amount of new, unsecured, and unsubordinated notes across numerous series with varying interest rates and maturity dates. This transaction marks a significant step in consolidating JCI's debt under the parent entity, potentially simplifying financial management and reporting for investors.

Key Highlights

  • 1Completion of a comprehensive debt exchange offer for existing notes issued by JCI Inc. and TIFSA.
  • 2Issuance of new, unsecured, and unsubordinated notes directly by Johnson Controls International plc.
  • 3Significant aggregate principal amounts of various existing note series were tendered and accepted for exchange.
  • 4The new notes are registered under the Securities Act of 1933, as detailed in a Form S-4 registration statement.
  • 5The exchange aims to simplify the company's debt structure by consolidating debt under the parent entity.
  • 6The new notes rank equally with all other unsecured and unsubordinated indebtedness of the company.
  • 7The transaction was settled on December 28, 2016.

Frequently Asked Questions

The primary purpose was to exchange existing notes issued by Johnson Controls' subsidiaries (JCI Inc. and TIFSA) for new notes issued directly by the parent company, Johnson Controls International plc. This aims to consolidate the company's debt under the JCI plc entity, potentially simplifying its capital structure and debt management.

The exchange involved various series of U.S. dollar-denominated senior notes and debentures originally issued by Johnson Controls, Inc. (JCI Inc.) and Tyco International Finance S.A. (TIFSA), with multiple maturity dates and interest rates. The company issued new notes in exchange for these.

This transaction essentially replaces subsidiary-level debt with parent-level debt. The new notes issued by Johnson Controls International plc are direct obligations of the parent company, are unsecured and unsubordinated, and will rank equally with other existing and future unsecured and unsubordinated debt of JCI plc. The total amount of debt outstanding may change based on tender acceptance rates and the terms of the new notes.

The registration of the new notes under the Securities Act of 1933 indicates that the issuance was conducted in compliance with federal securities laws, providing a level of transparency and investor protection. The details of these new notes and their terms are described in the company's prospectus filed with the SEC.