(Source: PRNewswire)
MILWAUKEE, Aug. 20 /PRNewswire/ -- Johnson Controls, Inc. today commenced offers to exchange its 6.50% Convertible Senior Notes due 2012 (the "Convertible Notes") and its Equity Units (the "Equity Units") in the form of Corporate Units (the "Corporate Units") in order to reduce the amount of its outstanding debt and related ongoing interest expense.
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Subject to the terms and conditions of the Convertible Notes exchange offer, the Company is offering to exchange any and all of its Convertible Notes for the following consideration per $1,000 principal amount of Convertible Notes: (i) 89.3855 shares of the Company's common stock; (ii) a cash payment of $120.00; and (iii) accrued and unpaid interest on the Convertible Notes to, but excluding, the settlement date, payable in cash.
In addition, subject to the terms and conditions of the Corporate Units exchange offer, the Company is offering to exchange up to 8,550,000 Corporate Units, or 95% of the Company's outstanding Equity Units, for the following consideration per Corporate Unit: (i) 4.8579 shares of the Company's common stock, (ii) a cash payment of $6.50; and (iii) a distribution consisting of the pro rata share of accrued and unpaid interest on the Company's 11.50% Subordinated Notes due 2042 that form a part of the Corporate Units (the "Subordinated Notes") to, but excluding, the settlement date, payable in cash.
The Company is not offering to exchange any Equity Units in the form of Treasury Units.
Both the Convertible Notes exchange offer and the Corporate Units exchange offer will expire at 11:59 p.m., New York City time, on September 17, 2009, unless extended or earlier terminated by the Company. Tendered Convertible Notes and Corporate Units may be withdrawn at any time prior to the applicable expiration date. In addition, holders may withdraw any tendered Convertible Notes or Corporate Units that are not accepted by the Company for exchange after the expiration of 40 business days following today's commencement of the exchange offers.
The Company originally issued $402.5 million aggregate principal amount of Convertible Notes and 9 million Corporate Units in March 2009. The Convertible Notes are convertible into the Company's common stock at an initial conversion rate of 89.3855 shares of common stock per $1,000 principal amount of Convertible Notes.
