Exhibit 1.1
EXECUTION VERSION
Tyco International Finance
S.A.
U.S. $500,000,000 4.125% Notes
due 2014
Fully and unconditionally
guaranteed as to payment of principal, premium, if any, and
interest by Tyco International Ltd.
Underwriting
Agreement
September 30, 2009
Banc of America Securities LLC
J.P. Morgan Securities Inc.
As representatives of the several
Underwriters
named in Schedule I
hereto,
c/o Banc of America Securities LLC
One Bryant Park
New York, New York 10036
and
c/o J.P. Morgan Securities Inc.
383 Madison Avenue, Floor 41
New York, New York 10179
Ladies and Gentlemen:
Tyco International Finance S.A., a
Luxembourg public limited liability company registered with the
Luxembourg Trade and Companies Register under the number B 123.550
and having its registered office at 29, Avenue de la Porte Neuve,
in L-2227 Luxembourg (the “ Company ”),
proposes, subject to the terms and conditions stated herein, to
issue and sell to the Underwriters named in Schedule I hereto
(the “ Underwriters ”), for whom you (the
“ Representatives ”) are acting as
representatives, an aggregate of $500,000,000 principal amount of
its 4.125% Notes due 2014 (the “ Securities
”). The Securities will be fully and unconditionally
guaranteed as to payment of principal,
premium, if any, and interest (the
“ Guarantees ”) by Tyco International Ltd., a
Swiss company (the “ Guarantor ”), and will have
the terms set forth in Schedule III hereto. The
Securities and the guarantees are to be issued pursuant to the
indenture, dated as of January 9, 2009, as supplemented by the
second supplemental indenture, to be dated as of October 5,
2009 (together, the “ Indenture ”), among the
Company, the Guarantor and Deutsche Bank Trust Company Americas, as
trustee (the “ Trustee ”).
The Company and the Guarantor have
filed with the Securities and Exchange Commission (the “
Commission ”) a registration statement, including a
prospectus (the file number of which is set forth on
Schedule III hereto) on Form S-3, relating to securities
(the “ Shelf Securities ”), including the
Securities, to be issued from time to time by the Company and the
Guarantor. The registration statement as amended to the date
of this agreement, including the information (if any) deemed to be
part of the registration statement at the time of effectiveness
pursuant to Rule 430A or Rule 430B under the Securities
Act of 1933, as amended (the “ Securities Act
”), is hereinafter referred to as the “ Registration
Statement ,” and the related prospectus covering the
Shelf Securities dated May 1, 2009 in the form first used to
confirm sales of the Securities (or in the form first made
available to the Underwriters by the Company and the Guarantor to
meet requests of purchasers pursuant to Rule 173 under the
Securities Act) is hereinafter referred to as the “ Basic
Prospectus .” The Basic Prospectus, as supplemented
by the prospectus supplement specifically relating to the
Securities in the form first used to confirm sales of the
Securities (or in the form first made available to the Underwriters
by the Company and the Guarantor to meet requests of purchasers
pursuant to Rule 173 under the Securities Act) is hereinafter
referred to as the “ Prospectus ,” and the term
“preliminary prospectus” means any preliminary form of
the Prospectus. For purposes of this Agreement, “free
writing prospectus” has the meaning set forth in
Rule 405 under the Securities Act, “ Time of Sale
Prospectus ” means the preliminary prospectus together
with the free writing prospectuses, if any, each identified in
Schedule II hereto, and “ broadly available road
show ” means a “ bona fide electronic road
show ” as defined in Rule 433(h)(5) under the
Securities Act that has been made available without restriction to
any person. As used herein, the terms “Registration
Statement,” “Basic Prospectus,”
“preliminary prospectus,” “Time of Sale
Prospectus” and “Prospectus” shall include the
documents, if any, incorporated by reference therein. The
terms “supplement,” “amendment,” and
“amend” as used herein with respect to the Registration
Statement, the Basic Prospectus, the Time of Sale Prospectus, any
preliminary prospectus or any free writing prospectus shall include
all documents subsequently filed by the Company or the Guarantor
with the Commission pursuant to the Securities Exchange Act of
1934, as amended (the “ Exchange Act ”), that
are deemed to be incorporated by reference therein.
1. Representations and
Warranties . The Company and the Guarantor, jointly and
severally, represent and warrant to, and agree with, each of the
Underwriters that:
(a)
The Registration
Statement has become effective; no stop order suspending the
effectiveness of the Registration Statement is in effect, and no
proceedings for such purpose are pending before or, to the
knowledge of the Company and the Guarantor, threatened by the
Commission. If the Registration Statement is an automatic
shelf registration statement as defined in Rule 405 under the
Securities Act, the Company and the Guarantor are well-known
seasoned issuers (as defined in Rule 405 under the Securities
Act) eligible to use the Registration Statement as an automatic
shelf
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registration
statement and neither the Company nor the Guarantor has received
notice that the Commission objects to the use of the Registration
Statement as an automatic shelf registration statement.
(b)
(i) Each
document, if any, filed or to be filed pursuant to the Exchange Act
and incorporated by reference in the Time of Sale Prospectus or the
Prospectus complied, or will comply when so filed, in all material
respects with the Exchange Act and the applicable rules and
regulations of the Commission thereunder, (ii) each part of
the Registration Statement, when such part became effective, did
not contain, and each such part, as amended or supplemented, if
applicable, will not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading,
(iii) the Registration Statement as of the date hereof does
not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to
make the statements therein not misleading, (iv) the
Registration Statement and the Prospectus comply, and as amended or
supplemented, if applicable, will comply in all material respects
with the Securities Act and the applicable rules and
regulations of the Commission thereunder, (v) the Time of Sale
Prospectus does not, and at the time of each sale of the Securities
in connection with the offering when the Prospectus is not yet
available to prospective purchasers and at the Time of Delivery (as
defined in Section 4(a)), the Time of Sale Prospectus, as then
amended or supplemented, if applicable, will not, contain any
untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading,
(vi) each broadly available road show, if any, when
considered together with the Time of Sale Prospectus, does not
contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not
misleading and (vii) the Prospectus does not contain and at
the Time of Delivery, as amended or supplemented, if applicable,
will not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements therein, in
the light of the circumstances under which they were made, not
misleading, except that the representations and warranties set
forth in this paragraph do not apply to (A) statements or
omissions in the Registration Statement, the Time of Sale
Prospectus, the Prospectus or the bona fide electronic road
show identified as an issuer free writing prospectus in Schedule IV
hereto based upon information relating to any Underwriter furnished
to the Company or the Guarantor in writing by such Underwriter
through the Representatives expressly for use therein or
(B) that part of the Registration Statement that constitutes
the Statement of Eligibility (Form T-1) under the Trust
Indenture Act of 1939, as amended (the “ Trust Indenture
Act ”), of the Trustee.
(c)
Neither the
Company nor the Guarantor is an “ineligible issuer” in
connection with the offering pursuant to Rules 164, 405 and
433 under the Securities Act. Any issuer free writing
prospectus (as defined in Rule 433(h) under the
Securities Act) that the Company or the Guarantor is required to
file pursuant to Rule 433(d) under the
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Securities Act
has been, or will be, filed with the Commission in accordance with
the requirements of the Securities Act and the applicable
rules and regulations of the Commission thereunder. Each
issuer free writing prospectus that the Company or the Guarantor
has filed, or is required to file, pursuant to
Rule 433(d) under the Securities Act or that was prepared
by or on behalf of or used or referred to by the Company or the
Guarantor complies or will comply in all material respects with the
requirements of the Securities Act and the applicable
rules and regulations of the Commission thereunder.
Except for the issuer free writing prospectuses, if any, identified
in Schedule II hereto and the electronic road show identified
in Schedule IV hereto, if any, each furnished to you before first
use, the Company and the Guarantor have not prepared, used or
referred to, and will not, without your prior consent, prepare, use
or refer to, any issuer free writing prospectus.
(d)
Each of the
Company and the Guarantor has been duly formed and is validly
existing as a company in good standing (to the extent good standing
is applicable in such jurisdiction) under the laws of the
jurisdiction of its formation, has the company power and authority
to own its property and to conduct its business as described in the
Time of Sale Prospectus and is duly qualified to transact business
and is in good standing in each jurisdiction in which the conduct
of its business or its ownership or leasing of property requires
such qualification, except to the extent that the failure to be so
qualified or be in good standing is not reasonably likely to result
in a material adverse effect on the general affairs, management,
consolidated financial condition, consolidated shareholders’
equity or consolidated results of operations of the Guarantor and
its subsidiaries taken as a whole (a “ Material Adverse
Effect ”).
(e)
Each of Tyco
International Holding S.a.r.l., a Luxembourg limited liability
company, and ADT Security Services, Inc., a Delaware
corporation (the “ Significant Subsidiaries ”),
has been duly formed, is validly existing as a corporation or
company, as the case may be, in good standing under the laws of the
jurisdiction of its incorporation or formation (to the extent good
standing is applicable in such jurisdiction), has the corporate or
company power and authority to own its property and to conduct its
business as described in the Time of Sale Prospectus and is duly
qualified to transact business and is in good standing in each
jurisdiction in which the conduct of its business or its ownership
or leasing of property requires such qualification (to the extent
good standing is applicable in such jurisdiction), except to the
extent that the failure to be so qualified or be in good standing
is not reasonably likely to result in a Material Adverse
Effect; all of the outstanding shares of capital stock of the
Company and each Significant Subsidiary have been duly and validly
authorized and issued, are fully paid and non-assessable and are
owned directly or indirectly by the Guarantor, free and clear of
all liens, encumbrances, equities or claims.
(f)
This Agreement
has been duly authorized, executed and delivered by each of the
Company and the Guarantor.
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(g)
The Securities
have been duly authorized by the Company. When executed and
authenticated in accordance with the provisions of the Indenture
and delivered to and paid for by the Underwriters in accordance
with the terms of this Agreement, the Securities will have been
duly executed, authenticated, issued and delivered and will be
valid and binding obligations of the Company, enforceable in
accordance with their terms, subject to the effects of applicable
bankruptcy, insolvency and similar laws affecting the enforcement
of creditors’ rights generally and equitable principles of
general applicability and the Securities will be entitled to the
benefits of the Indenture.
(h)
The Guarantees
have been duly authorized by the Guarantor. When the
Securities are executed and authenticated in accordance with the
provisions of the Indenture and delivered to and paid for by the
Underwriters in accordance with the terms of this Agreement, the
Guarantees will be the valid and binding obligations of the
Guarantor, enforceable in accordance with their terms, subject to
the effects of applicable bankruptcy, insolvency and similar laws
affecting the enforcement of creditors’ rights generally and
equitable principles of general applicability.
(i)
The Indenture has
been duly qualified under the Trust Indenture Act, duly authorized
by each of the Company and the Guarantor and, when executed and
delivered in accordance with the terms of this Agreement, will
constitute a valid and legally binding instrument, enforceable
against the Company and the Guarantor in accordance with its terms,
subject to the effects of applicable bankruptcy, insolvency and
similar laws affecting the enforcement of creditors’ rights
generally and equitable principles of general applicability; and
the Securities, the Guarantees and the Indenture will conform in
all material respects to the descriptions thereof in the Time of
Sale Prospectus and will be in substantially the form previously
delivered to you.
(j)
The execution and
delivery by the Company and the Guarantor of, and the performance
by them of their obligations under, this Agreement, the Indenture,
the Securities and the Guarantees will not contravene (i) any
provision of applicable law or the charter or other governing
documents or bye-laws of the Company or the Guarantor,
(ii) any agreement or other instrument binding upon the
Guarantor, the Company or any of the Significant Subsidiaries that
is material to the Guarantor and its subsidiaries, taken as a
whole, or (iii) any judgment, order or decree of any
governmental body, agency or court having jurisdiction over the
Guarantor, the Company or any Significant Subsidiary, and no
consent, approval, authorization or order of, or qualification
with, any governmental body or agency is required for the
performance by the Company or the Guarantor of its obligations
under this Agreement, the Indenture, the Securities or the
Guarantees, except such as may be required by the securities or
Blue Sky laws of the various states in connection with the offer
and sale of the Securities and the Guarantees by the
Underwriters.
(k)
Except as set
forth in the Time of Sale Prospectus, there has not occurred any
material adverse change, or any development that is reasonably
likely to involve a prospective
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material adverse
change, in the condition, financial or otherwise, or in the
earnings, business or operations of the Guarantor and its
subsidiaries, taken as a whole, since the date of the latest
audited consolidated financial statements included in the Time of
Sale Prospectus.
(l)
There are no
legal or governmental proceedings pending or, to the knowledge of
the Company or the Guarantor, threatened to which any of the
Guarantor, the Company or the Significant Subsidiaries is a party
other than proceedings accurately described in all material
respects in the Time of Sale Prospectus and proceedings that,
individually or in the aggregate, have had or are reasonably likely
to result in a Material Adverse Effect.
(m)
Except as
described in the Time of Sale Prospectus, no executive officer or
director of the Company, Guarantor or any Significant Subsidiary is
aware of or has taken any action, directly or indirectly, that
would result in a material violation by such persons of the Foreign
Corrupt Practices Act of 1977, as amended, and the rules and
regulations thereunder (the “ FCPA ”),
including, without limitation, making use of the mails or any means
or instrumentality of interstate commerce corruptly in furtherance
of an offer, payment, promise to pay or authorization of the
payment of any money, or other property, gift, promise to give, or
authorization of the giving of anything of value to any
“foreign official” (as such term is defined in the
FCPA) or any foreign political party or official thereof or any
candidate for foreign political office, in contravention of the
FCPA except for actions that, individually or in the aggregate, is
not reasonably likely to result in a Material Adverse
Effect.
(n)
The consolidated
historical financial statements and schedules of the Guarantor and
its consolidated subsidiaries incorporated by reference in the Time
of Sale Prospectus present fairly the consolidated financial
condition, results of operations and cash flows of the Guarantor
and its subsidiaries as of the dates and for the periods indicated,
comply as to form in all material respects with the applicable
accounting requirements of Regulation S-X and have been prepared in
conformity with U.S. generally accepted accounting principles
applied on a consistent basis throughout the periods involved
(except as otherwise noted therein) and the pro forma financial
information included in the Time of Sale Prospectus, if any, has
been prepared in conformity with generally accepted accounting
principles applied on a consistent basis, the assumptions on which
such pro forma financial information has been prepared are
reasonable, and such pro forma financial information has been
prepared in accordance with the applicable accounting requirements
of the Securities Act and the rules and regulations of the
Commission thereunder.
(o)
Neither the
Company nor the Guarantor is, and after giving effect to the
offering and sale of the Securities and the Guarantees and the
application of the proceeds thereof as described in the Time of
Sale Prospectus, neither will be, required to register as an
“investment company” as such term is defined in the
Investment Company Act of 1940, as amended (the “
Investment Company Act ”).
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(p)
Each preliminary
prospectus with respect to the Securities filed as part of the
registration statement as originally filed or as part of any
amendment thereto, or filed pursuant to Rule 424 under the
Securities Act, complied when so filed in all material respects
with the Securities Act and the applicable rules and
regulations of the Commission thereunder.
(q)
Prior to the date
hereof, neither the Company, the Guarantor nor any of their
affiliates has taken any action which is designed to or which has
constituted or which might cause or result in stabilization or
manipulation of the price of any security of the Company or the
Guarantor in connection with the offering of the
Securities.
(r)
Neither the
Company nor the Guarantor is (i) in violation of the charter
documents or other governing documents or bye-laws of the Company
and the Guarantor, as applicable, (ii) in default in the
performance or observance of any obligation, agreement, covenant or
condition contained in any indenture, mortgage, deed of trust, loan
agreement, lease or other agreement or instrument to which it is a
party or by which it or any of its properties may be bound, which
default has had or is reasonably likely to result in a Material
Adverse Effect.
(s)
The statements
set forth in the Basic Prospectus under the caption
“Description of Debt Securities and Guarantee of Debt
Securities” and in the Time of Sale Prospectus and the
Prospectus under the caption “Description of the Notes and
Guarantees”, insofar as they purport to describe the material
terms of the Securities and the Guarantees, and the statements set
forth in the Time of Sale Prospectus and the Prospectus under the
caption “Underwriting”, insofar as they purport to
describe the material provisions of the laws and documents referred
to therein, fairly describe, in all material respects, those terms
and provisions.
(t)
To the extent
that the statements set forth in the Prospectus under the caption
“Certain Luxembourg, U.S. Federal and Swiss Income Tax
Considerations” purport to describe certain provisions of the
tax laws referred to therein, such summaries fairly describe, in
all material respects, such provisions.
(u)
Deloitte & Touche
LLP, who have certified certain financial statements of the
Guarantor, are an independent registered public accounting firm as
required by the Securities Act and the rules and regulations
of the Commission thereunder.
(v)
Except as
disclosed in the Time of Sale Prospectus, since the date of the
latest audited consolidated financial statements included in the
Time of Sale Prospectus, there has been no change in internal
control over the consolidated financial reporting of the Guarantor
that has materially affected, or is reasonably likely to materially
affect, the internal control over the consolidated financial
reporting.
(w)
The Guarantor
maintains a system of internal control over financial reporting (as
such term is defined in Rule 13a-15(f) of the Exchange
Act) that complies with the
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requirements of
the Exchange Act and has been designed by the Guarantor’s
principal executive officer and principal financial officer, or
under their supervision, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with
generally accepted accounting principles. Except as disclosed
in the Time of Sale Prospectus, the internal control over
consolidated financial reporting of the Guarantor is effective and
the Guarantor is not aware of any material weaknesses in its
internal control over financial reporting.
(x)
The Guarantor
maintains disclosure controls and procedures (as such term is
defined in Rule 13a-15(e) of the Exchange Act) that
comply with the requirements of the Exchange Act; such disclosure
controls and procedures have been designed to ensure that material
information relating to the Guarantor is made known to the
Guarantor’s principal executive officer and principal
financial officer by others within the Guarantor and its
subsidiaries; and such disclosure controls and procedures are
effective.
(y)
Except as is not
reasonably likely to result in a Material Adverse Effect
(i) neither the Company nor any of its subsidiaries nor, to
the knowledge of the Company, any director, officer, agent,
employee or affiliate of the Company or any of its subsidiaries is
currently subject to any sanctions administered by the Office of
Foreign Assets Control of the U.S. Treasury Department (“
OFAC ”), and (ii) to the best of the
Company’s knowledge, the Company will not directly or
indirectly use the proceeds of the offering, or lend, contribute or
otherwise make available such proceeds to any subsidiary, joint
venture partner or other person or entity, for the purpose of
financing the activities of any person currently subject to any
U.S. sanctions administered by OFAC.
(z)
The Company
represents that the choice of law provisions set forth in this
agreement are legal, valid and binding under the laws of
Luxembourg, and will be recognized and given effect to by the
courts of Luxembourg (unless a court determined that doing so would
be contrary to public policy in Luxembourg); the Company has, under
the laws of Luxembourg, the power to submit to the jurisdiction of
New York courts; the irrevocable submission of the Company to the
jurisdiction of the New York courts and the waiver by the Company
of any immunity and any objection to the venue of the proceeding in
a New York court, included in this agreement, are legal, valid and
binding under the laws of Luxembourg; neither the Company nor any
of its assets is entitled to immunity (or any similar defense) from
suit, execution, attachment or other legal process in Luxembourg;
this Agreement is in proper legal form under the laws of
Luxembourg, for the enforcement thereof against the Company and
nothing in Luxembourg law prevents suit upon this Agreement in the
courts of Luxembourg; and it is not necessary (a) in order to
enable the Underwriters to exercise or enforce their rights under
this Agreement in Luxembourg or (b) by reason of the entry
into and performance of this Agreement, that any of the
Underwriters should be licensed, qualified, authorized or entitled
to do business in Luxembourg.
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(aa)
The Guarantor
represents that the choice of law provisions set forth in this
agreement are legal, valid and binding under the laws of
Switzerland, and will be recognized and given effect to by the
courts of Switzerland (unless a Swiss court has determined that
doing so would be contrary to public policy in Switzerland); the
Guarantor can, under the laws of Switzerland, submit to the
jurisdiction of New York courts; the irrevocable submission of the
Guarantor to the jurisdiction of the New York courts and the waiver
by the Guarantor of any immunity and any objection to the venue of
the proceeding in a New York court, included in this agreement, are
legal, valid and binding under the laws of Switzerland; neither the
Guarantor nor any of its assets is entitled to immunity (or any
similar defense) from suit, execution, attachment or other legal
process in Switzerland; this Agreement is in proper legal form
under the laws of Switzerland, for the enforcement thereof against
the Guarantor and nothing in Swiss law prevents suit upon this
Agreement in the courts of Switzerland; and it is not necessary
(a) in order to enable the Underwriters to exercise or enforce
their rights under this Agreement in Switzerland or (b) by
reason of the entry into and performance of this Agreement, that
any of the Underwriters should be licensed, qualified, authorized
or entitled to do business in Switzerland.
2.
Agreements of
the Company and the Underwriters to Sell and Purchase
. Upon the
basis of the representations and warranties herein contained but
subject to the conditions hereinafter stated, the Company hereby
agrees to issue and sell to the several Underwriters, and each
Underwriter agrees, severally and not jointly, to purchase from the
Company the respective principal amount of Securities set forth in
Schedule I hereto opposite its name at a purchase price of
99.178% of the principal amount thereof (the “ Purchase
Price ”) in each case plus accrued interest, if any, to
the Time of Delivery (as defined below).
3.
Terms of
Offering . The Company is advised by
you that the Underwriters propose to make a public offering of
their respective portions of the Securities as soon after the
Registration Statement and this Agreement have become effective as
in your judgment is advisable. The Company is further advised
by you that the Securities are to be offered to the public upon the
terms set forth in the Prospectus.
4.
Payment for
and Delivery of the Securities .
(a)
Payment for the
Securities shall be made by or on behalf of the Representatives to
the Company in Federal (same-day) funds in New York City against
delivery of such Securities for the respective accounts of the
several Underwriters at 10:00 a.m., New York City time, on
October 5, 2009 or such other time and date as the
Representatives and the Company may agree upon in writing.
Such time and date are herein called the “ Time of
Delivery ”.
(b)
The Securities to
be purchased by each Underwriter hereunder will be represented by
one or more definitive global Securities in book-entry form which
will be deposited by or on behalf of the Company with The
Depository Trust Company (“ DTC ”) or its
designated custodian. The Securities shall be delivered to
the Representatives at the
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Time of Delivery
for the respective accounts of the several Underwriters, with any
transfer taxes payable in connection with the transfer of the
Securities to the Underwriters duly paid by the Company, against
payment therefor plus accrued interest, if any, to the date of
payment and delivery.
5.
Conditions to
the Underwriters’ Obligations . The several
obligations of the Underwriters to purchase and pay for the
Securities at the Time of Delivery are subject, in their
discretion, to the representations and warranties of the Company
and Guarantor contained in this Agreement being true and correct as
of the Time of Delivery, that the Company and the Guarantor shall
have each performed all of their respective obligations hereunder
theretofore to be performed, and further subject to the following
conditions:
(a)
On or after
1:27 p.m. on September 30, 2009 (the “
Applicable Time ”), there shall not have occurred any
downgrading, nor shall any notice have been given of any intended
or potential downgrading or of any r
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