By Wendy Van Sickle
Columbus, Ohio, Sept. 6 – Johnson Controls International plc and Tyco Fire & Security Finance SCA sold $400 million of 4.9% senior notes (Baa2/BBB+) with a 10-year tenor on Tuesday, according to a FWP filing with the Securities and Exchange Commission.
The notes priced at 98.509 to yield 5.09%.
The spread priced out at 175 basis points over U.S. Treasuries.
The notes will have a make-whole call optional redemption with a Treasuries plus 30 bps premium until three months before their maturity date.
J.P. Morgan Securities LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., ING Financial Markets LLC and TD Securities (USA) LLC are joint bookrunners.
The notes will be listed on the New York Stock Exchange.
Proceeds will be used for general corporate purposes, which may include the repayment of debt, acquisitions, additions to working capital, the repurchase of ordinary shares, dividends, capital expenditures and investments in subsidiaries.
Johnson Controls is a global diversified technology company based in Cork, Ireland. Tyco Fire & Security is a wholly owned subsidiary and holding company with offices in Luxembourg.
| Issuers: | Johnson Controls International plc and Tyco Fire & Security Finance SCA
|
| Amount: | $400 million
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| Issue: | Senior notes
|
| Maturity: | Dec. 1, 2032
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| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., ING Financial Markets LLC and TD Securities (USA) LLC
|
| Co-managers: | Barclays, Credit Agricole Securities (USA) Inc., Danske Markets Inc., Standard Chartered Bank, U.S. Bancorp Investments, Inc. and Westpac Banking Corp.
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| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Arthur Cox, Allen & Overy and Simpson Thacher & Bartlett LLP
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| Counsel to underwriters: | Latham & Watkins LLP
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| Coupon: | 4.9%
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| Price: | 98.509
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| Yield: | 5.09%
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| Spread: | Treasuries plus 175 bps
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| Call features: | Make-whole call at Treasuries plus 30 bps prior to Sept. 1, 2032; then at par
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| Trade date: | Sept. 6
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| Settlement date: | Sept. 14
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| Ratings: | Moody’s: Baa2
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| S&P: BBB+
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| Distribution: | SEC registered
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| Cusip: | 47837RAE0
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