Summary
Johnson Controls International plc (JCI) filed an 8-K on May 23, 2023, to report the completion of an offering of €800 million aggregate principal amount of 4.250% Senior Notes due 2035. The offering was conducted under an Underwriting Agreement dated May 16, 2023, with proceeds intended to finance or refinance eligible green projects. Pending allocation, net proceeds will be held in cash, cash equivalents, or treasury securities. The notes are unsecured and unsubordinated obligations of JCI and its wholly owned subsidiary, Tyco Fire & Security Finance S.C.A. They rank senior to existing and future subordinated debt, equal to non-subordinated debt, effectively junior to secured debt, and structurally junior to subsidiary debt. The issuance strengthens the company's capital structure and provides dedicated financing for its green initiatives, aligning with its sustainability goals.
Key Highlights
- 1Completion of €800 million Senior Notes offering due 2035 with a 4.250% annual interest rate.
- 2The offering is registered and has been completed under an underwriting agreement dated May 16, 2023.
- 3Proceeds are intended to finance or refinance eligible green projects, aligning with the company's sustainability strategy.
- 4The Notes are unsecured and unsubordinated obligations of the Issuers (JCI and TFSCA).
- 5Notes rank senior to subordinated debt, equal to unsubordinated debt, effectively junior to secured debt, and structurally junior to subsidiary debt.
- 6The notes mature on May 23, 2035, with annual interest payments due on May 23.
- 7The Indenture includes covenants limiting liens, sale and leaseback transactions, mergers, consolidations, and asset transfers, with certain exceptions.