Tyco International Limited (TYC) Message Board

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Non-Tech : Tyco International Limited (TYC)

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To: GVTucker who wrote (2895)	2/11/2002 6:38:16 PM
From: Terrapin	Read Replies (2) of 3770

Tapping bank credit lines to repurchase commercial paper (coporate bonds). It is a negative because the credit lines are more expensive to pay back and Tyco has quantified and disclosed their estimate for the additional expense. It is a negative that the situation arose such that they found it necessary to use the credit lines. If they had not had complicated accounting then they would not have been subject to as-yet unfounded speculation regarding their accounting. If they did not have bonds come due during a period of intense (and, again, as-yet unfounded) attacks on their credit-worthiness then they would have had continued free access to the bond markets. It is a positive in that it provides all the necessary liquidity for the time it will take to execute Tyco's debt-reduction plan. It frees them from the nervousness in the bond market; the nervousness that dissipated within a few days anyway. It was an unusual step taken in unusual times. Other comments welcome, Terrapin

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