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.