March 10, 2009 (FinancialWire) -- Johnson Controls, Inc. (NYSE: JCI) plans to offer and sell eight million equity units with an initial stated amount of $50 per unit, or $400 million in the aggregate, and $100 million of convertible senior notes due 2012, for possible aggregate offerings of $500 million. J.P. Morgan Securities (NYSE: JPM), Citigroup Global Markets (NYSE: C) and Merrill Lynch & Co. (NYSE: MER) are serving as joint book-running managers.

The gross proceeds will rise to $575 million if the underwriters exercise their 15% over-allotment options in connection with each security in full. Neither the offering of equity units nor the offering of convertible senior notes will be contingent on the completion of the other offering.

The equity units will initially consist of a forward purchase contract and a 5% undivided beneficial ownership interest in $1,000 of subordinated notes due 2042. Under the purchase contract, holders are required to purchase shares of the company's common stock no later than March 31, 2012.

Johnson Controls plans to use the net proceeds from the offerings for general corporate purposes, including the repayment of short-term indebtedness that the company has incurred to finance its working capital requirements.

Milwaukee-based Johnson Controls offers environmental control products and services used in more than 200 million vehicles, 12 million homes and one million commercial buildings.

The company has 140,000 employees.

FinancialWire" ( http://www.financialwire.net ), an independent, proprietary news service of Investrend Communications, Inc., receives no compensation for its news or opinions. Further disclosure is at http://www.investrend.com/articles/secondlevel.asp?level=472 . To contact FinancialWire" write to inquiries@financialwire.net .

Free annual reports for companies mentioned in the news are accessible via http://investrend.ar.wilink.com/?level=279 .

Copyright(C)2009 by financialwire.net, Inc. All rights reserved.

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.