Tyco Capital, the financial services subsidiary of Tyco International Ltd, announced yesterday that it would draw from US$8.5bn in unsecured bank credit facilities. According to Reuters the proceeds will be used to pay off short-term debt. Tyco Capital said it would use the bank credit facilities to repurchase its outstanding commercial paper at scheduled maturities.
Albert Gamper, President and CEO of Tyco Capital, made comments during a conference call yesterday expressing his “grave concern” regarding recent developments at Tyco Capital.: “I must say there’s no question the (credit market) has been extremely tight and restricted to us. We’re disappointed by that. We’re frustrated by that.”
