CORK, Ireland - Johnson Controls (NYSE:JCI) International plc (NYSE: JCI), a company specializing in smart building technology and currently valued at $55.08 billion, has announced the pricing of an additional $250 million in senior notes due 2032. This offering is an addition to the previously issued $400 million of 4.900% senior notes due on the same year. The transaction is expected to close on December 10, 2024, with the proceeds intended for general corporate purposes.
These purposes include repaying, refinancing, or redeeming the company's commercial paper and other short-term debt. The funds may also potentially be used for acquisitions, working capital enhancements, share repurchases, dividend payments, capital expenditures, and investments in subsidiaries. According to InvestingPro data, Johnson Controls operates with a moderate level of debt and has maintained dividend payments for 54 consecutive years, demonstrating strong financial management.
BofA Securities and US Bancorp (NYSE:USB) have been appointed as the joint lead book-running managers to oversee the offering, with Barclays (LON:BARC), BBVA (BME:BBVA), and UniCredit Capital Markets also managing the book. The offering is being conducted under an effective shelf registration statement, with prospectus supplements available from the respective managing firms.
Johnson Controls has positioned itself as a leader in the creation of efficient and sustainable environments, emphasizing innovation in smart building solutions. The company's digital offering, OpenBlue, is aimed at transforming buildings across various industries, including healthcare, education, data centers, and manufacturing.
The company's forward-looking statements indicate a focus on innovation, operational improvement, and strategic portfolio management, despite acknowledging potential risks and uncertainties in the market. These include economic conditions, geopolitical volatility, technological advancements, and regulatory changes. With a remarkable YTD return of 47.72% and seven analysts revising earnings upward, InvestingPro analysis reveals additional insights about the company's prospects through its comprehensive Pro Research Report, available along with 12+ exclusive ProTips.
This news is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy the securities in question.
In other recent news, Johnson Controls has made several significant developments. The company has priced its €500 million senior notes offering due in 2033, with proceeds intended for various corporate purposes, including debt repayment and refinancing, potential acquisitions, dividends, and investments in subsidiaries. This move is part of Johnson Controls' broader strategy to maintain a robust balance sheet.
The company also reported a strong fourth-quarter performance for fiscal 2024, with a 7% increase in orders and a 22% rise in adjusted earnings per share (EPS) to $1.28. Johnson Controls anticipates continued growth in fiscal 2025, projecting an adjusted EPS of $3.40 to $3.50 and mid-single-digit organic sales growth.
In addition to its robust financial performance, Johnson Controls has announced plans to sell its Residential & Light Commercial segment to Bosch (NS:BOSH) as part of a broader $400 million restructuring plan aimed at achieving $500 million in annual cost savings. The company also reported a record backlog of $13.1 billion, indicating strong future potential. These are recent developments in a series of strategic moves by Johnson Controls to enhance its operating model and customer experience.
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