Tyco to use part of $3.1 billion cash to reduce debt

Pittsburgh, May 27 - Tyco International Ltd. said Thursday it will use a portion of its $3.1 billion cash on hand to reduce balance sheet debt over the next several quarters, including its convertible debt securities.

The company will determine the timing and terms of any purchases of publicly traded convertibles as well as the amount and method of purchase.

Tyco will also use the cash toward reducing its corporate accounts receivable securitization programs and subsidiary debt, and will make additional voluntary pension contributions in excess of $500 million to its U.S. and non-U.S. benefit pension plans over the next six months. Tyco expects to have $2 billion cash remaining after the debt reduction payments.

As of March 31, the company's total balance sheet debt was $17.7 billion, plus $783 million drawn under its accounts receivable securitization programs.

Tyco provides products and services for the fire and security, electronics, healthcare, engineered products and plastics and adhesives industries.

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