ADT 2008 Annual Report Download - page 236

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
12. Related Party Transactions (Continued)
Mr. Walsh knew that the registration statement covering the sale of Tyco securities as part of the CIT
Group acquisition contained a material misrepresentation concerning fees payable in connection with
the acquisition. Pursuant to the plea and settlement, Mr. Walsh paid $20 million in restitution to Tyco
on December 17, 2002. Our claims against Mr. Walsh are still pending.
13. Debt
Debt at September 26, 2008 and September 28, 2007 is as follows ($ in millions):
2008 2007
Commercial paper .................................... $ 116 $ —
364-day senior bridge loan facility due 2008(2) ................ — 367
6.125% public notes due 2008(1) .......................... 300 300
6.125% public notes due 2009(1) .......................... 215 215
6.75% public notes due 2011 ............................ 516 516
6.375% public notes due 2011 ........................... 849 849
Revolving senior credit facility due 2011 .................... — —
Revolving senior credit facility due 2012 .................... 286 308
6.0% notes due 2013 .................................. 655 654
7.0% public notes due 2019 ............................. 435 —
6.875% public notes due 2021 ........................... 717 —
3.125% convertible senior debentures due 2023 ............... — 21
7.0% public notes due 2028 ............................. 16 437
6.875% public notes due 2029 ........................... 23 723
Other(1)(2) .......................................... 136 72
Total debt .......................................... 4,264 4,462
Less current portion .................................. 555 380
Long-term debt ...................................... $3,709 $4,082
(1) These instruments, plus $40 million of the amount shown as other, comprise the current portion of long-term debt as of
September 26, 2008.
(2) These instruments, plus $13 million of the amount shown as other, comprise the current portion of long-term debt as of
September 28, 2007.
At September 26, 2008 the Company classified $116 million of short-term borrowings as long-term.
Settlement of this debt is not expected to require the use of working capital in the next year, as the
Company has both the intent and the ability to refinance this debt on a long-term basis.
Debt Tenders
In connection with the settlement of litigation arising from the Separation related to the
Company’s public debt, on June 3, 2008 the Company, along with its finance subsidiary Tyco
International Finance S.A. (‘‘TIFSA’’), a wholly-owned subsidiary of the Company and successor
company to Tyco International Group S.A. (‘‘TIGSA’’), a wholly-owned subsidiary of the Company
organized under the laws of Luxembourg, consummated consent solicitations and exchange offers
related to certain series of debt issued under the 1998 and 2003 indentures. In connection with the
exchange offers, Tyco issued $422 million principal amount of 7.0% notes due 2019 in exchange for an
equal principal amount of 7.0% notes due 2028 and $707 million principal amount of 6.875% notes due
2021 in exchange for an equal principal amount of 6.875% notes due 2029. In connection with the
consent solicitations, holders of the Company’s 6.0% notes due 2013, 6.125% notes due 2008, 6.125%
notes due 2009, 6.75% notes due 2011, 6.375% notes due 2011, 7.0% notes due 2028 and 6.875% notes
due 2029 collectively received consent payments totaling $250 million.
2008 Financials 133