Summary
Johnson Controls International plc (JCI) has entered into two new credit agreements, a $2.5 billion 5-year revolving credit facility and a $500 million 364-day revolving credit facility, both maturing with JPMorgan Chase Bank, N.A. These new agreements replace the company's prior 5-year credit facility. The purpose of these agreements is to provide general business financing and letters of credit, offering flexibility with options like converting the 364-day facility into term loans.
Key Highlights
- 1JCI secured a new $2.5 billion 5-year revolving credit agreement, maturing in December 2024.
- 2A separate $500 million 364-day revolving credit agreement was also established, maturing in December 2020.
- 3The new credit facilities replace the company's previous $2.0 billion 5-year credit agreement.
- 4Borrowings will bear interest based on LIBOR or Base Rate plus an applicable margin tied to JCI's credit rating.
- 5A sustainability-linked component is included, where interest and facility fees can be adjusted based on performance in workplace safety and greenhouse gas emissions targets.
- 6The credit agreements require JCI to maintain consolidated shareholders' equity of at least $3.5 billion.
- 7The new facilities are unsecured and will be used for general business purposes.