DOW JONES NEWSWIRES
Nearly all holders of $402.5 million of Johnson Controls Inc's
(JCI) convertible notes agreed to swap notes in the auto-parts and
heating-systems maker's exchange offer for cash and stock.
The company said Friday that $400.4 million was tendered by the
expiration date.
Johnson Controls originally issued $402.5 million in the notes
due 2012 that were convertible into 89.3855 shares per $1,000 of
notes. Back then, the conversion would have been worth $858.99,
though because of a spike in the company's stock price, it is now
worth nearly triple.
The tender offer will give the note holders the same amount of
shares as well as $120 in cash and accrued and unpaid interest.
That totals 35.8 million shares and $61.2 million, Johnson Controls
said Friday. The company had about 600 million shares
outstanding.
Johnson Controls in July said it returned to profitability in
its latest quarter after two-straight periods of losses and said
earnings should continue to get stronger in coming quarters.
Shares closed Thursday at $27.47. The stock is up 51% this
year.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com