PEMBROKE, Bermuda (Dow Jones/AP) ? Bermuda-based Tyco International Ltd. on Tuesday said it will take a $167 million charge after repurchasing $350 million in convertible bonds.

The industrial conglomerate also backed its forecast for operating earnings in the current quarter, its fiscal fourth. Tyco repurchased $350 million of its 2.75 percent convertible bonds due 2018. The company paid $511 million cash to repurchase the bonds, reducing the underlying common shares by 15 million.

So far in the quarter, Tyco has used $861 million cash under a plan to strengthen its balance sheet by reducing debt and making contributions to its defined benefit plans. Tyco expects to maintain a cash balance of at least $2 billion as it continues to execute its plan, which could result in additional charges.

Tyco repeated its forecast, first given in August, that it will earn 41 cents to 43 cents a share in the fourth quarter.

The estimate excludes restructuring and divestiture programs and charges for the early retirement of debt.

Analysts have been expecting fourth-quarter earnings of 43 cents a share, according to Thomson First Call.

In the same period last year, Tyco earned 34 cents a share excluding items.

New York Stock Exchange-listed Tyco shares closed on Tuesday before the announcement at $31.14, down 42 cents, or 1.3 percent.