Tyco Slashes Us350 Debt
Tyco repurchased $US350 million of its 2.75 percent convertible bonds due 2018. The company paid $US511 million cash to repurchase the bonds, reducing the underlying common shares by 15 million.
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So far in the quarter, Tyco has used $US861 million cash under a plan to strengthen its balance sheet by reducing debt and making contributions to its defined benefit plans.
Tyco expects to maintain a cash balance of at least $US2 billion as it continues to execute its plan, which could result in additional charges. Tyco repeated its forecast, first given in August, that it will earn US41 cents to US43 cents a share in the fourth quarter.
The estimate excludes restructuring and divestiture programs and charges for the early retirement of debt. Analysts have been expecting fourth-quarter earnings of 43 cents a share, according to Thomson First Call.