Summary
Tyco International Ltd. (the "Company") filed an 8-K on May 5, 2010, reporting the completion of a registered offering of $500 million in aggregate principal amount of 3.375% Senior Unsecured Notes due 2015, issued by its wholly-owned subsidiary, Tyco International Finance S.A. (TIFSA). These notes are fully and unconditionally guaranteed by the parent company, Tyco International Ltd., on a senior unsecured basis. This transaction represents a material definitive agreement and the creation of a direct financial obligation for the Company. The issuance of these notes is a significant financing event for Tyco. The proceeds are expected to bolster the company's liquidity and potentially be used for general corporate purposes or to manage its debt structure. Investors should note the specific terms related to interest payments, redemption options for the issuer, and a change of control provision that grants noteholders the right to require TIFSA to purchase their notes at a premium under certain circumstances.
Key Highlights
- 1Tyco International Ltd. completed a $500 million offering of 3.375% Senior Unsecured Notes due 2015.
- 2The notes were issued by Tyco International Finance S.A. (TIFSA), a wholly-owned subsidiary.
- 3Tyco International Ltd. provided a full and unconditional senior unsecured guarantee for the notes.
- 4The notes are governed by an Indenture, supplemented by a Third Supplemental Indenture dated May 5, 2010.
- 5Interest on the notes is payable semi-annually at 3.375% per year.
- 6TIFSA has the option to redeem the notes at a redemption price equal to the greater of principal amount or a make-whole price, plus accrued interest.
- 7A change of control triggering event provides noteholders with the right to require TIFSA to purchase their notes at 101% of the principal amount, plus accrued interest, if TIFSA does not exercise its redemption right.