Summary
Johnson Controls International plc (JCI) announced on March 15, 2017, the successful completion of an offering of €1 billion aggregate principal amount of 1.000% Senior Notes due 2023. This offering was made through an Underwriting Agreement and was registered under the Securities Act of 1933. The net proceeds from this issuance are earmarked for general corporate purposes, which may encompass acquisitions, working capital, share repurchases, dividends, capital expenditures, investments in subsidiaries, and debt repayment, including a portion of its outstanding commercial paper. The newly issued notes are unsecured, unsubordinated obligations of the company. They rank senior to existing and future subordinated debt, equal to non-subordinated debt, effectively junior to secured debt to the extent of the collateral's value, and structurally junior to any debt issued by JCI's subsidiaries. The notes mature on September 15, 2023, with annual interest payments beginning September 15, 2017.
Key Highlights
- 1Completed a €1 billion offering of 1.000% Senior Notes due 2023.
- 2Proceeds to be used for general corporate purposes, including potential acquisitions, share repurchases, and debt reduction.
- 3Notes are unsecured and unsubordinated debt of Johnson Controls International plc.
- 4Notes mature on September 15, 2023.
- 5Interest rate on the notes is a fixed 1.000% per annum, paid annually.
- 6Company retains the option to redeem the notes prior to maturity, with a 'make-whole' provision for early redemptions before June 15, 2023.
- 7Holders have the right to require repurchase at 101% of principal plus accrued interest upon a Change of Control Triggering Event.