CORK, Ireland - Johnson Controls (NYSE: NYSE:JCI), a leader in building technologies and solutions, has announced the pricing of a $700 million senior notes offering due in 2029. The proceeds from this offering are earmarked for general corporate purposes.
These include repayment, redemption, or refinancing of the company's existing commercial paper and other short-term debts. The transaction is anticipated to close on April 19, 2024, contingent on standard closing conditions.
Tyco Fire & Security Finance, S.C.A., a Johnson Controls subsidiary, is co-issuing the notes. A consortium of financial institutions, including Citigroup, J.P. Morgan, and Morgan Stanley (NYSE:MS), among others, are acting as joint book-running managers for the offering.
The offering is being made under an effective shelf registration statement and related prospectus supplement, which interested parties can obtain through contacting the banks involved or by visiting the SEC's EDGAR database online.
Johnson Controls, with a history spanning nearly 140 years, is positioned as a global authority in creating intelligent, healthy, and sustainable environments. The company's mission encompasses the transformation of building performance to benefit people and the planet.
Employing a global team of 100,000 experts across more than 150 countries, Johnson Controls boasts the world's most extensive portfolio of building technology, software, and service solutions.
This press release contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These statements are identified by terms like "may," "expect," and "anticipate," but the absence of these words does not mean a statement isn't forward-looking.
The company warns that these forward-looking statements are subject to numerous factors, some beyond the company's control, including economic conditions, market volatility, and technological changes, among others.
The information in this article is based on a press release statement from Johnson Controls International plc.
InvestingPro Insights
As Johnson Controls (NYSE: JCI) secures funding for its strategic financial maneuvers, investors and market watchers may find the company's current financial health and market performance of particular interest. With a robust market capitalization of $43.88 billion, Johnson Controls stands as a significant entity in the Building Products industry.
The company has demonstrated a commitment to shareholder returns, as evidenced by its consistent dividend payments over the last 54 years and a recent uptick in its dividend growth, which was 5.71% over the last twelve months as of Q1 2024.
Two notable InvestingPro Tips highlight Johnson Controls' attractive investment profile. Firstly, the company has raised its dividend for three consecutive years, showing a dedication to returning value to shareholders. Secondly, the stock is currently trading at a low P/E ratio relative to near-term earnings growth, with an adjusted P/E ratio for the last twelve months as of Q1 2024 standing at 16.31, which may indicate that the stock is undervalued based on its earnings potential.
From a performance standpoint, Johnson Controls has enjoyed a strong return over the last three months, with a price total return of 24.47%. This bullish trend is further supported by analysts' predictions that the company will remain profitable this year, a sentiment backed by a profitability track record over the last twelve months.
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