[Tyco International Takes Equity Position in Worldwide Fiber]
Financing Will Form Part of Funding for Tyco Submarine Systems Limited Construction of the $850 Million Hibernia Cable Project
HAMILTON, Bermuda, Sept. 13 /PRNewswire/ -- Tyco International Ltd. (NYSE:TYC; BSX; LSE: TYI), a diversified manufacturing and service company, announced today that it has taken an equity position in Worldwide Fiber Inc., which will form part of the funding for construction of Worldwide Fiber's transatlantic undersea fiber optic network "Hibernia."
Worldwide Fiber completed equity private placements totaling $345 million in Convertible Preferred Stock with Tyco and three independent investors, which combined represent a minority interest in Worldwide Fiber. The proceeds of the placements, together with an underwritten project financing commitment will fully fund the $850 million Hibernia fiber optic network. In July, Worldwide Fiber had selected Tyco Submarine Systems Ltd. (TSSL) as the sole supplier for the 12,200 kilometer transatlantic Hibernia project which will connect Worldwide Fiber's North American network to Europe, as their first step toward international connectivity.
"This equity participation with Worldwide Fiber highlights our optimism in the future growth of the undersea fiber optic cable market," said L. Dennis Kozlowski, Chairman and Chief Executive Officer. "We are pleased to be a strategic investor in Worldwide Fiber, which is one of the fastest growing independent fiber optic network owners and provider of carrier services. Our investment in Worldwide Fiber and our previously announced joint development with Telefonica Internacional of SAm-1, a South American undersea fiber optic cable project, furthers our commitment to equity participation in businesses which include undersea cable projects. This provides Tyco an additional attractive opportunity to benefit from growing demand in undersea telecommunications traffic, which will have a positive benefit to our shareholders, and adds to our participation in this industry beyond the construction and installation of undersea systems," he added. |
