Summary
Tyco International Ltd. (the "Company") filed an 8-K on January 9, 2009, to report the closing of a significant debt offering. The Company's wholly-owned subsidiary, Tyco International Finance S.A. ("TIFSA"), successfully sold $750 million in aggregate principal amount of 8.50% senior unsecured notes due 2019 to underwriters. The net proceeds, approximately $745 million after expenses, are intended for general corporate purposes. These purposes are broad and include potential debt repayment, acquisitions, working capital additions, share repurchases, capital expenditures, and subsidiary investments, providing flexibility in managing the company's financial structure.
Key Highlights
- 1Tyco International Finance S.A. issued $750 million of 8.50% senior unsecured notes due 2019.
- 2The notes are guaranteed on a senior unsecured basis by the parent company, Tyco International Ltd.
- 3Net proceeds from the offering were approximately $745 million.
- 4Funds raised are designated for general corporate purposes, offering management flexibility.
- 5Potential uses of proceeds include debt repayment, acquisitions, working capital, share repurchases, and capital expenditures.
- 6The notes provide holders with a repurchase option on July 15, 2014, at 100% of the principal amount.
- 7Tyco has the option to redeem the notes at a make-whole price or in the event of certain tax changes.
- 8A change of control triggering event could obligate Tyco to repurchase the notes at 101% of the principal amount.
Frequently Asked Questions
This 8-K filing reports the closing of a material definitive agreement, specifically the issuance and sale of $750 million in aggregate principal amount of Tyco International Finance S.A.'s 8.50% Notes due 2019. It also details the associated underwriting and indenture agreements.
The net proceeds of approximately $745 million are designated for general corporate purposes. This includes a wide range of potential uses such as repaying existing indebtedness, funding acquisitions, increasing working capital, repurchasing common shares, making capital expenditures, and investing in the company's subsidiaries.
The notes bear an annual interest rate of 8.50% and mature in 2019. Interest payments are scheduled semi-annually on January 15 and July 15, with the first payment due July 15, 2009.
Yes, the notes include several provisions. Holders have the right to require Tyco to repurchase their notes on July 15, 2014, at 100% of the principal amount. Tyco can redeem the notes at its option at a make-whole price or under specific tax change scenarios. Additionally, upon a change of control triggering event, Tyco may be required to repurchase the notes at 101% of their principal amount.