Summary
This Form 8-K filing from Tyco International plc (which appears to be the registrant, despite the Johnson Controls International plc header in the prompt) reports on the redemption of its outstanding 7.000% Notes due 2019 and 6.875% Notes due 2021. The subsidiary, Tyco International Finance S.A., has called for redemption the entire principal amounts of these notes, totaling $242 million and $462 million, respectively. The redemption is scheduled for October 14, 2015. For investors holding these specific notes, this filing provides crucial information regarding the timing and terms of their redemption. The redemption price will be based on either 100% of the principal amount or a calculated present value of future payments, adjusted by a benchmark Treasury rate plus a specified spread (15 basis points for the 2019 notes and 25 basis points for the 2021 notes), plus any accrued interest. Investors should review the detailed terms within the filing to understand the precise payout they can expect.
Key Highlights
- 1Tyco International plc, through its subsidiary Tyco International Finance S.A., announced the redemption of its 7.000% Notes due 2019 and 6.875% Notes due 2021.
- 2The total principal amount being redeemed for the 7.000% Notes due 2019 is $242 million.
- 3The total principal amount being redeemed for the 6.875% Notes due 2021 is $462 million.
- 4The redemption date for both series of notes is scheduled for October 14, 2015.
- 5The redemption price calculation is complex, based on the greater of par value or a present value calculation discounted at the Adjusted Redemption Treasury Rate plus a spread (15 bps for 2019 notes, 25 bps for 2021 notes), plus accrued interest.
- 6This action indicates a potential debt management strategy, possibly to refinance at lower interest rates or reduce overall debt.
- 7The filing is made under Item 8.01 (Other Events) of Form 8-K.