Johnson Controls offering to draw $1.7 billion

Glendale-based global multi-industrial firm Johnson Controls Inc. has priced a public offering of $1.7 billion in fixed rate senior notes.

The offering consists of: $300 million in senior notes with a 1.4 percent interest rate, which mature in 2017; $500 million in senior notes with a 3.6 percent interest rate, which mature in 2024; $450 million in senior notes with an interest rate of 4.6 percent, which mature in 2044; $450 million in senior notes with a 4.9 percent interest rate, which mature in 2064.

Johnson Controls expects to gain about $1.7 billion in net proceeds from the offering. The funds will be used to finance the company’s $1.6 billion acquisition of Richardson, Texas-based Air Distribution Technologies from the Canada Pension Plan Investment Board, as well as for general corporate purposes. ADT is a leading North American independent air distribution and ventilation product provider.

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