NEW YORK (Dow Jones) - Shares of Bermuda-registered Tyco International Ltd. continued to rebound Friday, rising almost six percent a day after the conglomerate announced plans to pay off $10 billion in debt.

The surge came after Tyco shares rose nearly six percent on Thursday, when a

company executive said plans are on course for a spin-off of CIT, the company's finance division, by the end of June.

Tyco, based in Bermuda but with headquarters in Exeter, N.H., expects to

get $7.2 billion for the unit through an initial public offering or a sale.

The $10 billion in debt would be paid off by the end of this year with the proceeds of the spin-off and cash.

Tyco has struggled for months to overcome negative publicity over the company's accounting practices and a decision to abandon a break-up plan announced in January. The company's shares have dropped 63 percent since January 1.

Tyco shares rose $1.19 to $21.75 Friday on the New York Stock Exchange