Johnson Controls (JCI) Announces Plans to Remarket 11.5% Subordinated Notes due 2042
Johnson Controls, Inc. (NYSE: JCI) announced that it expects to remarket its 11.50% Subordinated Notes due 2042 (CUSIP No. 478366 AT4) originally issued as part of its Corporate Units (NYSE: JCI-PZ) (CUSIP No. 478366 602). Holders of record on February 24, 2012 of the outstanding Notes that are components of the Corporate Units and holders of Notes held separately from the Corporate Units ("Separate Notes") who elect to participate in a successful remarketing will receive the remaining proceeds, if any, from the remarketing, after deduction of the remarketing fee and, in the case of the holders of Corporate Units, the purchase price of the portfolio of U.S. Treasury securities to be substituted for the Notes as a component of the Corporate Units.
The remarketing is scheduled to occur on any of February 27, 2012, February 28, 2012 and February 29, 2012. The reset rate and interest payment dates for the Notes will be established, and modified terms of the Notes will be set, on the remarketing date on which the Notes are successfully remarketed and effective on and after the reset effective date (which will be the third business day after the date of a successful remarketing). The reset rate will equal the coupon rate that will enable the Notes to be remarketed at a price equal to the sum of the purchase price for the U.S. Treasury securities portfolio and the purchase price for the Separate Notes and, at the company's option, the applicable remarketing fee. The remarketing fee may range from $250,000 to $276,000.
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The remarketing is scheduled to occur on any of February 27, 2012, February 28, 2012 and February 29, 2012. The reset rate and interest payment dates for the Notes will be established, and modified terms of the Notes will be set, on the remarketing date on which the Notes are successfully remarketed and effective on and after the reset effective date (which will be the third business day after the date of a successful remarketing). The reset rate will equal the coupon rate that will enable the Notes to be remarketed at a price equal to the sum of the purchase price for the U.S. Treasury securities portfolio and the purchase price for the Separate Notes and, at the company's option, the applicable remarketing fee. The remarketing fee may range from $250,000 to $276,000.
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