8-KMaterial AgreementsFinancial EventsExhibits & Filings

Johnson Controls International plc 8-K Report, Material Agreement (May 30, 2007)

Filed May 30, 2007For Securities:JCI

Summary

This 8-K filing from Tyco International Ltd. (note: the filing is for Tyco, not JCI) on May 30, 2007, primarily concerns amendments to existing bridge loan facilities. These amendments were made in direct response to Tyco's memorandum of understanding (MOU) to settle a significant securities class action lawsuit. The settlement involves establishing a $2.975 billion cash fund for claims stemming from alleged misconduct by former management between December 1999 and June 2002. As a consequence of the settlement, the aggregate commitment under Tyco's bridge loan facilities was increased from $10 billion to $12.5 billion. This indicates the company is securing additional financing, likely to fund the substantial settlement amount. Investors should note that this filing focuses on the financing arrangements related to the lawsuit resolution, rather than operational performance or strategic shifts.

Key Highlights

  • 1Tyco International Ltd. amended its bridge loan facilities on May 25, 2007.
  • 2The amendments were made in connection with a memorandum of understanding to settle a securities class action lawsuit.
  • 3The settlement fund for the class action lawsuit is established at $2.975 billion.
  • 4The aggregate commitment under the bridge loan facilities was increased from $10 billion to $12.5 billion.
  • 5The increase in borrowing capacity is directly linked to funding the securities class action settlement.
  • 6The filing details amendments to three specific bridge loan agreements with Citibank, N.A. and Bank of America, N.A.

Frequently Asked Questions

Tyco amended its bridge loan facilities to increase borrowing capacity in order to fund a $2.975 billion settlement for a securities class action lawsuit. The lawsuit stemmed from alleged misconduct by former management and affected shareholders who purchased Tyco securities between December 1999 and June 2002.

The aggregate commitment under Tyco's bridge loan facilities was increased from $10 billion to $12.5 billion.

The $2.975 billion settlement fund is intended to pay claims from plaintiffs in a consolidated securities class action lawsuit against Tyco International.

No, this 8-K filing does not provide an update on Tyco's operational financial performance. Its focus is strictly on the material definitive agreement related to the amendments of bridge loan facilities in preparation for settling a significant legal matter.