Tyco sets pricing in tender for convertibles

New York, May 22 - Tyco International Ltd. and subsidiary Tyco International Group SA set pricing in their tender offer for their convertible debt.

For the $750 million principal amount of 3.125% convertible senior debentures due 2023 of Tyco International Group, the payment will be $1,550.48 per $1,000 principal amount, based on a weighted average price of $32.31; for the $692,700 principal amount of 0% Liquid Yield Option Notes due 2020 of Tyco, the payment will be $827.71 per $1,000 principal amount at maturity; and for the $35,000 principal amount of 0% convertible debentures due 2021 of Tyco International Group, the payment will be $824.83 per $1,000 principal amount at maturity.

Pricing was fixed after the close on Tuesday.

For each $1,000 principal amount of 3.125% debentures, the payout was set as $62.50 plus 45.9821 times the 10-day volume-weighted average price of Tyco's shares on May 22.

Pricing for the other two series had already been announced.

The payout for each $1,000 principal amount of LYONs was set equal to the accreted value of the notes on the estimated payment date plus $10.00.

The payout for each $1,000 principal amount of 0% debentures was fixed at the accreted value of the notes on the estimated payment date plus $10.00.

As previously announced, due to the declaration of its regular quarterly dividend on May 10, Tyco increased its payout for the 3.125% convertibles by $2.30.

Tyco also announced pricing Tuesday in its tender offers and consent solicitations for several series of notes.

The company is conducting the offers as part of its planned separation into three separate companies. The consent solicitations seek consents for some clarifying amendments to the note indentures.

The offers and consent solicitations for the nonconvertible dollar-denominated debt due between 2007 and 2029 as well as the convertibles will still expire at midnight ET on May 24.

Goldman, Sachs & Co. (800 828-3182 or 212 902-9077) and Morgan Stanley (212 761-1941 or 800 624-1808) are the dealer managers. Global Bondholder Services Corp. (866 470-3700 or collect 212 430-3774) is the information agent.

Based in Pembroke, Bermuda, Tyco produces electronics, fire and security, health care and engineered products and services.

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