Johnson Controls’ new revolvers feature sustainability-linked pricing

By Sarah Lizee

Olympia, Wash., Dec. 9 – Johnson Controls Inc.’s new five-year $2.5 billion revolving credit facility and a 364-day $500 million revolver entered into on Dec. 5 are tied to sustainability performance, according to a press release.

As previously reported, the company entered into the two credit agreements with JPMorgan Chase Bank, NA as administrative agent.

The sustainability metrics are aligned to the safety of Johnson Controls employees, the greenhouse gas emission reductions the company is able to achieve from energy efficiency and renewable energy customer projects and the greenhouse gas emissions reductions the company is able to achieve from its internal operations.

Adjustments may be up to 4.5 basis points per annum in the case of the interest rate and up to 0.75 bps in the case of the facility fee.

Borrowings under the five-year facility bear interest at Libor plus a margin ranging from 80.5 bps to 120 bps, and the facility fee ranges from 7 bps to 17.5 bps, each depending on credit ratings.

Borrowings under the 364-day facility bear interest at Libor plus a margin ranging from 82.5 bps to 125 bps, and the facility fee ranges from 5 bps to 12.5 bps, also depending on credit ratings.

ING Capital LLC is the sustainability structuring agent.

Johnson Controls is a diversified technology and industrial company based in Milwaukee.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.