Summary
Johnson Controls International plc (JCI), through its subsidiary Tyco International Ltd., has entered into a new $500 million Senior Bridge Letter of Credit Facility with Citibank, N.A. This facility, established on June 21, 2007, is designed to support corporate purposes of Tyco and its subsidiaries through the issuance and reimbursement of letters of credit. The agreement includes provisions for potential loans with interest rates tied to either a base rate or LIBOR, depending on utilization and credit rating. This new facility is a short-term financing arrangement, scheduled to terminate on December 15, 2007. While it provides crucial flexibility for Tyco's immediate operational needs, investors should note its temporary nature. The facility is subject to customary covenants and conditions, and its availability is contingent on the absence of defaults. The details of this material definitive agreement are further elaborated in the referenced Senior Bridge Letter of Credit Agreement exhibit.
Key Highlights
- 1Tyco International Ltd. (a JCI subsidiary) entered into a $500 million Senior Bridge Letter of Credit Facility on June 21, 2007.
- 2The facility is with Citibank, N.A., serving as issuer and administrative agent.
- 3It is intended to support corporate purposes of Tyco and its subsidiaries through letters of credit.
- 4The facility allows for potential loans with interest rates based on either a base rate or LIBOR plus a margin.
- 5This is a short-term financing instrument, with a scheduled termination date of December 15, 2007.
- 6The agreement includes standard affirmative and negative covenants, and availability is subject to no defaults.