14-4 Tyco & Debt Tender

14-4 Tyco & Debt Tender - Tyco may alter Plan to Buy...

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Tyco may alter Plan to Buy Back $11 Billion in Bonds with Tenders Source: Wall Street Journal, 15 February 2002 Tyco International Ltd. said it might alter its plan to repurchase $11 billion in bonds through tender offers, saying it might instead decide to buy back its debt on the open market or use some other means to accom- plish a similar end. The disclosure came in the conglomerate's financial statement for its fiscal first quarter ended Dec. 31, 2001, filed late yesterday with regulators. The quar- terly filing contained more detailed disclosures than usual about acquisitions, goodwill and other financial matters, as Tyco attempted to reassure skittish inves- tors about its accounting practices. Last month, Tyco announced a plan to break itself into four pieces and sell its plastics unit. At the time, the company said it intended to use the proceeds from initial public offerings of three of the units, plus cash raised from the sale of the plastics unit, to tender for $11 billion in debt as part of a plan to reduce its overall $23 billion in borrowings. On Wednesday, Tyco Chief Executive L. Dennis
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This note was uploaded on 05/03/2010 for the course ACCT 202 taught by Professor Yang during the Spring '10 term at UPenn.

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