Summary
This 8-K filing reports on Tyco International Ltd.'s (the "Company") entry into a material definitive agreement concerning the issuance of $500 million in aggregate principal amount of senior unsecured notes by its wholly-owned subsidiary, Tyco International Finance S.A. (TIFSA). The offering comprises $250 million of 3.750% Notes due 2018 and $250 million of 4.625% Notes due 2023. The notes are fully and unconditionally guaranteed by Tyco International Ltd. on a senior unsecured basis. This action indicates Tyco's proactive approach to managing its capital structure and potentially securing long-term financing at specific interest rates. Investors should note the details of the note issuance, including the interest rates, maturity dates, and covenants. The notes are redeemable under specific conditions, including at the company's option with a make-whole provision or at 100% of principal after certain dates, and also in the event of certain tax changes. Furthermore, a "change of control" event could trigger a put option for noteholders, allowing them to sell their notes back to TIFSA at 101% of the principal amount. This issuance provides insights into the company's financing strategy and its commitment to meet future obligations.
Key Highlights
- 1Tyco International Ltd. (the "Company") and its subsidiary TIFSA completed a $500 million debt offering.
- 2The offering consists of $250 million of 3.750% Notes due 2018 and $250 million of 4.625% Notes due 2023.
- 3The Notes are senior unsecured obligations of TIFSA, guaranteed by Tyco International Ltd.
- 4The issuance is governed by an Indenture and two Supplemental Indentures dated January 12, 2011.
- 5Interest payments are scheduled semi-annually, commencing July 15, 2011.
- 6Notes are redeemable at the company's option under certain conditions, including make-whole provisions and after specific maturity dates.
- 7A change of control triggering event may allow noteholders to require TIFSA to repurchase their notes at 101% of the principal amount.