The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Convertible makes for $5 billion party

Issuer: Tyco Amount: $3.45 billionBookrunner: Merrill Lynch

f anyone is wondering just how Merrill Lynch managed to outperform its peers in investment banking in the last three months of 2000, then a quick look at the activities of the firm's convertibles department on November 14 might shed some light.


The quarter was a good one for convertibles in general, but on that day Merrill priced 10% of the year's entire supply. Late that day they priced a $1.5 billion deal for Solectron, and a few hours earlier a $125 million issue for Province Healthcare.


But the deal that stands out is the one launched at the start of the day - the $3.45 billion convertible for Tyco. "It's the single-largest equity-linked deal launched in the history of the solar system," beams an unsurprisingly ebullient Phil Jones, head of convertibles at Merrill Lynch.


What's more, it was a new structure that was launched just four days after Merrill got the mandate. Tyco needed to raise $2 billion to pay for its acquisition of Lucent Technologies' power systems business which it had bought for $2.5 billion.


"It's not the usual Merrill LYONS convertible," explains Jones. "Those are zero-coupon deals.





You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree