How Tyco break-up may benefit bonds

Normally bondholders would be wringing their hands at the prospect of a conglomerate with almost $13 billion in debt splitting into three separate entities. But in the case of manufacturing giant Tyco, which unveiled just such a plan recently, bondholders have been uncharacteristically optimistic. Nadia Damouni finds out why

pg57-gif

When Edward Breen, Tyco's chairman and CEO, announced on January 13 that the firm intends to split the $40 billion conglomerate into three entities, investment-grade bondholders breathed a sigh of relief. Their reaction was not because the spin-off would be entirely positive for them - since unlocking value and allowing the stand-alone companies to grow independently of their parent typically favours shareholders - but because fears surrounding an outright sale or leveraged buyout had been

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here