#Senior Notes #Ireland #Johnson Controls #Cork #corporate finance

Johnson Controls’ €500 Million Senior Notes Offering

On December 4, 2024, Johnson Controls International plc, a recognized leader in smart and sustainable building solutions, revealed its plans to issue €500 million in senior notes due in 2033. This strategic move aims to bolster the company's financial capabilities and support various corporate initiatives.

Purpose of the Offering

The proceeds from this offering will primarily be directed toward general corporate purposes. These purposes encompass a comprehensive range of financial strategies, including but not limited to:

• - Repayment and Refinancing: Addressing outstanding commercial paper and other near-term obligations.
• - Corporate Growth: Facilitating acquisitions, enhancing working capital, and enabling share repurchases and dividend distribution.
• - Capital Investments: Financing capital expenditures and boosting investments in subsidiary operations.

Collaborative Arrangement with Co-Issuers

Notably, Tyco Fire & Security Finance, S.C.A., a subsidiary of Johnson Controls, will act as the co-issuer of these notes. This collaborative approach aims to enhance the transaction's appeal to investors and ensure robust management of the offerings.

Transaction Timeline

The anticipated closing date for this transaction is set for December 11, 2024, pending customary closing conditions. The process involves various financial institutions acting as lead managers to facilitate the offering efficiently:

• - Joint Lead Book-Running Managers: BofA Securities, Crédit Agricole CIB, and ING.
• - Additional Book-Running Managers: Citigroup, Deutsche Bank, J.P. Morgan, and Morgan Stanley.
• - Co-Managers: ANZ, Danske Bank, ICBC Standard Bank, Standard Chartered Bank, and TD Securities.

Navigating Regulatory Compliance

The offering will proceed under an effective shelf registration statement and aligned prospectus, ensuring compliance with regulatory standards. Interested investors may access the necessary documentation through various channels, including direct contact with financial institutions involved and pertinent government websites.

About Johnson Controls

Established nearly 140 years ago, Johnson Controls has continually redefined building management through innovation. Apart from its commitment to sustainability and health within the built environment, the company leverages its comprehensive digital platform, OpenBlue, to enhance operational performance across diverse sectors such as healthcare, education, and manufacturing.

Forward-Looking Considerations

It’s imperative to recognize that forward-looking statements related to this offering involve inherent risks and uncertainties. Key factors influencing outcomes include market trends, economic conditions, regulatory landscapes, and the company's operational efficiencies. Investors are encouraged to conduct thorough research and not rely solely on forward-looking assertions. For detailed insights, refer to regulatory filings made with the U.S. Securities and Exchange Commission.

In conclusion, Johnson Controls' issuance of senior notes represents a significant step in reinforcing its financial foundation, poised to support sustainable and transformative growth. As the firm navigates through a dynamic market environment, its financial strategies will play a pivotal role in achieving long-term objectives and shareholder value.