Tyco buys back $350 million of 2.75% convertibles

Pittsburgh, Sept. 7 - Tyco International Ltd. bought back $350 million of its 2.75% convertible bonds due 2018 with $511 million in cash, according to a company news release.

The repurchase will mean a $167 million charge to earnings in the fourth quarter. Debt has been reduced by about $350 million and Tyco's underlying common shares will be reduced by 15 million, the release said.

The buyback, together with a previously announced repayment of $350 million of its accounts receivable securitization programs, is part of Tyco's plan to use its strong liquidity position to further strengthen the company's balance sheet.

Tyco is a Pembroke, Bermuda-based provider of fire and security, electronics, healthcare, engineered and plastics and adhesives products and services.

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