What is the primary purpose of this 8-K filing?

The primary purpose of this 8-K filing is to report Tyco International Ltd.'s entry into a material definitive agreement, specifically an underwriting agreement for the issuance of $500 million in senior unsecured notes by its subsidiary, Tyco International Finance S.A.

How much money did Tyco International raise from this note issuance, and what will it be used for?

Tyco International raised approximately $495.0 million in net proceeds from the $500 million note issuance. These funds are designated for general corporate purposes, which may include repaying existing debt, funding acquisitions, increasing working capital, repurchasing shares, making capital expenditures, and investing in subsidiaries.

What are the key terms of the new 4.125% Notes due 2014?

The Notes carry a 4.125% annual interest rate, payable on April 15 and October 15, commencing April 15, 2010. They are senior unsecured obligations of TIFSA, guaranteed by Tyco International Ltd. The notes are redeemable at TIFSA's discretion, with a provision for a 'make-whole' price or upon certain tax events. Additionally, noteholders have a put option at 101% of the principal amount if a change of control triggering event occurs.

Does this issuance impact Tyco's debt structure or credit risk?

This issuance increases Tyco's total debt by $500 million. However, the proceeds are intended for general corporate purposes, which could include debt reduction, suggesting a potential refinancing or strategic use of capital. The senior unsecured nature of the notes and the parent company guarantee mean they rank equally with other senior debt and are backed by the parent's creditworthiness.

JCI 8-K: Material Agreements & Financial Events

Summary

This 8-K filing by Tyco International Ltd. (though filed under Johnson Controls International plc due to a potential entity name confusion in the prompt, the filing is for Tyco International Ltd.) reports on the entry into a material definitive agreement concerning a debt issuance. Specifically, Tyco International Finance S.A. (TIFSA), a wholly-owned subsidiary, entered into an underwriting agreement to sell $500 million in aggregate principal amount of 4.125% Notes due 2014. The offering closed on October 5, 2009, with net proceeds approximating $495.0 million after deducting underwriter discounts and estimated expenses. These proceeds are earmarked for general corporate purposes, including debt repayment, acquisitions, working capital, share repurchases, capital expenditures, and subsidiary investments. The notes are senior unsecured obligations of TIFSA, fully guaranteed by Tyco International Ltd., and rank equally with other senior debt. The filing details the interest rate, payment schedule, redemption provisions, and a change of control provision that allows noteholders to require repurchase under specific circumstances.

Key Highlights

1Tyco International Finance S.A. (TIFSA) issued $500 million of 4.125% Senior Unsecured Notes due 2014.
2The net proceeds from the offering are approximately $495.0 million after expenses.
3Proceeds will be used for general corporate purposes, including debt reduction, acquisitions, and working capital.
4The Notes are fully and unconditionally guaranteed by the parent company, Tyco International Ltd.
5The Notes bear interest at 4.125% per annum, payable semi-annually.
6The Notes are redeemable at TIFSA's option, subject to certain conditions including a make-whole provision.
7A change of control triggering event gives noteholders the right to require TIFSA to repurchase the notes at 101% of the principal amount.

Johnson Controls International plc 8-K Report, Material Agreement (Oct 5, 2009)

Summary

Key Highlights

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