Johnson Controls to tie with U.S. syndicated loan market

Interest rates and fees tied to employee safety and reducing greenhouse gas emissions from operations and customer projects.

Johnson Controls International plc is one of the first industrial companies to tie its senior revolving facilities to specific sustainability metrics in the U.S. syndicated loan market. This precedent setting announcement ties Johnson Controls new five-year senior revolving credit facility and its one-year senior revolving credit facility to a sustainability-linked pricing mechanism.

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.

“Our products and services empower our customers and communities to consume less energy and conserve resources that are why I am proud this industry-leading commitment tied to our line of credit demonstrates that sustainability is at the heart of our vision and values,” said George Oliver, chairman and CEO.

A total of 18 banks have agreed to this sustainability line of credit with Johnson Controls. Joint lead arrangers and joint book runners on this transaction were JPMorgan Chase Bank, N.A., BofA Securities, Inc., Barclays Bank PLC and Citibank, N.A. with ING Capital LLC acting as the sustainability structuring agent.