Summary
Johnson Controls International plc (JCI) announced through an 8-K filing on September 13, 2022, that it, along with its subsidiary Tyco Fire & Security Finance S.C.A., completed a $400 million offering of 4.900% Senior Notes due 2032 on September 14, 2022. The proceeds from this offering are intended for general corporate purposes, which may include the repayment or redemption of near-term indebtedness. These senior notes are unsecured and unsubordinated obligations of the issuers. They rank senior to expressly subordinated debt and equally to non-subordinated debt, but effectively junior to secured indebtedness and structurally junior to debt incurred by subsidiaries. The notes will mature on December 1, 2032, and carry a semi-annual interest payment. The company has the option to redeem the notes under certain conditions, including a "make-whole" provision before September 2032 and at par thereafter, as well as upon specific tax events. A change of control triggering event may give noteholders the right to require the issuers to repurchase the notes at 101% of the principal amount.
Key Highlights
- 1Johnson Controls International plc (JCI) completed a $400 million offering of 4.900% Senior Notes due 2032.
- 2The offering closed on September 14, 2022.
- 3Net proceeds are intended for general corporate purposes, including potential repayment of near-term debt.
- 4The notes are unsecured and unsubordinated obligations of the issuers.
- 5The notes will mature on December 1, 2032, with semi-annual interest payments.
- 6The notes are redeemable at the company's option, subject to certain conditions and call premiums.
- 7A change of control triggering event may allow noteholders to require repurchase at 101% of principal.