Most holders of Johnson Controls Inc.'s (JCI) corporate units
agreed to the auto-parts and heating-systems maker's exchange offer
for cash and common stock.
Earlier this month, the company swapped $400.4 million in
convertible notes for cash and stock as it seeks to reduce its
outstanding debt and interest expense.
About 90% of 8.5 million corporate units will be exchanged for
$52.5 million in cash plus 39.3 million shares, worth about $982.1
million with Friday's close price. Johnson had offered to buy 8.55
million units, or 95% of the amount outstanding at the time.
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 Friday at $24.99 and weren't active premarket. The
stock is up 38% so far this year, though it is off its year-earlier
level by a fifth.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com