Tyco says LYON holders can put notes back to company

New York, Oct. 17 - Tyco International Ltd. (Ba2) said that holders of its zero-coupon Liquid Yield Option Notes due 2020 have the right to surrender their LYONs for cash purchase during a period that runs through 5 p.m. ET on Nov. 17.

Tyco, a Pembroke, Bermuda-based diversified manufacturing and services conglomerate, issued $4.657 billion principal amount at maturity of the notes in November 2000, and says that about $3.2 billion principal amount are currently outstanding. The LYONs are convertible into 10.3014 Tyco common shares per $1,000 principal amount, subject to certain conditions and subject to adjustment under certain circumstances.

The company said the noteholders have the right to require Tyco to purchase their LYONs at a cash price equal to $775.66 per $1,000 principal amount.

It said that if all outstanding LYONs were to be surrendered for purchase, the aggregate cash purchase price would be about $2.5 billion. Tyco intends to fund the repurchase from available funds.

Holders wishing to surrender their LYONs for purchase by Tyco must deliver a purchase notice to the trustee and paying agent for the LYONS, U.S. Bank NA by the purchase deadline on Nov. 17. Holders may withdraw any LYONs previously surrendered for purchase at any time prior to the expiration of the repurchase offer.

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