Summary
This 8-K filing from Tyco International Ltd. (JCI is incorrect, the registrant is Tyco International Ltd.) on May 31, 2007, primarily reports the termination of two material definitive agreements: a five-year credit agreement and a three-year credit agreement. Both agreements were terminated prior to their scheduled expiration dates on May 30, 2007. The termination is directly linked to Tyco's previously announced plan to separate into three independent, publicly-traded companies. Investors should note that no early termination penalties were incurred by Tyco International Ltd. or its subsidiaries. The terminated credit facilities, a $1 billion revolving credit facility and a $1.5 billion revolving credit facility, have been replaced by three new revolving credit agreements entered into in connection with the planned spin-offs. This action signifies a strategic restructuring and the winding down of existing financial arrangements as the company prepares for its division.
Key Highlights
- 1Termination of the Five-Year Credit Agreement (originally $1 billion revolving credit facility) on May 30, 2007.
- 2Termination of the Three-Year Credit Agreement (originally $1.5 billion revolving credit facility) on May 30, 2007.
- 3Both credit agreements were terminated prior to their scheduled expiration dates.
- 4The terminations are a direct result of Tyco International Ltd.'s planned separation into three independent companies.
- 5No early termination penalties were incurred by the company or its subsidiaries.
- 6The terminated credit facilities have been replaced by three new revolving credit agreements related to the planned spin-offs.