8-KMaterial Agreements

Johnson Controls International plc 8-K Report, Material Agreement (Jun 30, 2006)

Filed June 30, 2006For Securities:JCI

Summary

This 8-K filing from Tyco International Ltd. (filed under the JCI ticker symbol on June 30, 2006, though the filing itself is for Tyco International) reports a material definitive agreement. Specifically, a wholly-owned subsidiary, Tyco International Group S.A., amended its $1.5 billion 3-year revolving bank credit facility. The key change is the extension of the facility's maturity date from December 22, 2006, to December 21, 2007. This amendment primarily impacts the company's liquidity and financial flexibility by extending the availability of a significant credit line by one year. It is important to note that Tyco International had not borrowed any funds under this facility as of the reporting date. Investors should view this as a proactive step to ensure continued access to capital, although the lack of current borrowing suggests strong existing cash reserves or a conservative approach to debt utilization at that time.

Key Highlights

  • 1Tyco International Ltd. amended its $1.5 billion 3-year revolving bank credit facility.
  • 2The maturity date of the credit facility was extended by one year, from December 22, 2006, to December 21, 2007.
  • 3The amendment was executed by Tyco International Group S.A., a wholly-owned subsidiary.
  • 4The company had not drawn any funds under this credit facility as of the report date.
  • 5This filing indicates proactive management of the company's financial resources and debt obligations.
  • 6The filing is dated June 30, 2006, with the earliest event reported as June 28, 2006.

Frequently Asked Questions

The main purpose of this 8-K filing is to report a material definitive agreement, specifically an amendment to Tyco International's revolving bank credit facility.

The amendment extends the maturity date of a $1.5 billion credit facility by one year, providing the company with continued access to these funds for an extended period. It enhances financial flexibility but does not immediately change the company's debt levels, as no funds were borrowed under the facility.

No, as of the filing date (June 30, 2006), Tyco International had not borrowed any funds under this $1.5 billion revolving bank credit facility.

Extending a credit facility, even if unused, is a common practice to ensure continued access to capital. It provides financial flexibility for future needs, strengthens the company's balance sheet, and can be a proactive measure against potential future credit market tightening or unexpected operational demands.