8-KOther EventsExhibits & Filings

Johnson Controls International plc 8-K Report, Corporate Update (May 20, 2024)

Filed May 20, 2024For Securities:JCI

Summary

Johnson Controls International plc (JCI) has announced the commencement of cash tender offers for its 5.125% Senior Notes due 2045 and 4.500% Senior Notes due 2047. The company aims to purchase up to an aggregate principal amount of $90 million of these notes. This move suggests JCI is actively managing its debt structure, potentially to optimize its cost of capital or rebalance its debt maturity profile. Investors should note the specific terms and conditions outlined in the Offer to Purchase, including expiration dates and early tender deadlines. The offers are not conditioned on a minimum tender amount and will be funded by existing cash or commercial paper. The ability for JCI to increase or decrease the Aggregate Tender Cap provides some flexibility in how much debt they ultimately repurchase.

Key Highlights

  • 1Johnson Controls is initiating cash tender offers for two series of its senior notes: 5.125% due 2045 and 4.500% due 2047.
  • 2The company plans to purchase up to a maximum of $90 million in aggregate principal amount of these notes.
  • 3The tender offers are not contingent on a minimum amount being tendered.
  • 4Early tender is incentivized with an 'Early Tender Payment' for notes submitted by June 3, 2024.
  • 5The offers are funded by cash on hand and/or ordinary course commercial paper borrowings.
  • 6The tender offers will expire on June 18, 2024, unless extended.

Frequently Asked Questions

Johnson Controls has launched cash tender offers to buy back a portion of its outstanding 5.125% Senior Notes due 2045 and 4.500% Senior Notes due 2047. They intend to purchase up to $90 million in total principal amount of these notes.

Companies typically make tender offers to manage their debt obligations. This could be to reduce interest expenses if they can refinance at a lower rate, to adjust their debt maturity profile, or to return capital to debt holders.

The early tender deadline, at which point investors are eligible for an 'Early Tender Payment,' is 5:00 p.m. New York City time on June 3, 2024. The offers will expire at 5:00 p.m. New York City time on June 18, 2024, unless extended or terminated.

The company plans to fund the purchases of these notes using existing cash on hand and/or through borrowings under its ordinary course commercial paper program.