What is the total amount of debt raised in this offering and for what maturity?

Tyco International Finance S.A. (TIFSA) raised a total of $1.5 billion in aggregate principal amount. This was split between $750 million of 3.900% Notes due 2026 and $750 million of 5.125% Notes due 2045.

How will the proceeds from the notes offering be used?

The net proceeds are primarily intended to fund the redemption of the outstanding $364.3 million aggregate principal amount of TIFSA's 8.5% Notes due 2019. Any remaining proceeds will be used for general corporate purposes, which could include acquisitions, debt repayment, capital expenditures, investments in subsidiaries, share repurchases, and funding legacy liabilities.

What is the credit quality and security backing these new notes?

The new notes are senior unsecured obligations of TIFSA and rank equally with all existing and future senior debt of TIFSA. Importantly, they are fully and unconditionally guaranteed on a senior unsecured basis by both Tyco International plc and Tyco Fire & Security Finance S.C.A., providing investors with an additional layer of credit support.

What are the key features regarding the redemption of these notes?

TIFSA has the option to redeem the notes in whole or in part prior to maturity. For the 2026 Notes, this option is available before November 14, 2025, and for the 2045 Notes, before March 14, 2045. Redemptions during these periods may involve a 'make-whole' amount. On or after these dates, redemption can occur at 100% of the principal amount. Additionally, TIFSA may redeem the notes in the event of certain tax changes. Holders also have the right to require TIFSA to purchase their notes at 101% of the principal amount in the event of a 'change of control triggering event'.

JCI 8-K: Material Agreements

Summary

This 8-K filing from Tyco International plc, filed on September 14, 2015, details the completion of a significant debt offering. The company, through its subsidiary Tyco International Finance S.A. (TIFSA), successfully issued $1.5 billion in aggregate principal amount of notes: $750 million of 3.900% Notes due 2026 and $750 million of 5.125% Notes due 2045. These notes are fully guaranteed by Tyco International plc and Tyco Fire & Security Finance S.C.A. The primary use of proceeds is to redeem the outstanding 8.5% Notes due 2019, with the remainder allocated for general corporate purposes, including potential acquisitions and debt repayment. This offering represents a strategic move to refinance existing debt with lower interest rates and longer maturities for a portion of the issuance, potentially improving the company's financial flexibility and reducing future interest expenses. Investors should note the guaranteed nature of these senior unsecured obligations, providing an additional layer of security. The filing also outlines the redemption provisions, including make-whole clauses and change of control provisions, which are important considerations for bondholders.

Key Highlights

1Completion of a $1.5 billion aggregate principal amount notes offering by TIFSA.
2The offering comprised $750 million of 3.900% Notes due 2026 and $750 million of 5.125% Notes due 2045.
3Notes are fully and unconditionally guaranteed on a senior unsecured basis by Tyco International plc and Tyco Fire & Security Finance S.C.A.
4Primary use of proceeds is to redeem the entire $364.3 million principal amount of outstanding 8.5% Notes due 2019.
5Remaining net proceeds to be used for general corporate purposes, including potential acquisitions, debt repayment, and capital expenditures.
6Detailed redemption terms are provided, including optional redemption with make-whole provisions and redemption upon a change of control triggering event.

Johnson Controls International plc 8-K Report, Material Agreement (Sep 14, 2015)

Summary

Key Highlights

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