NEW YORK (Bloomberg) - Tyco International Ltd., the world's biggest maker of security and fire systems, agreed to pay $250 million to settle a lawsuit with firms representing bondholders.

The agreement was reached with firms that advise holders of about 80 percent of $3.7 billion of debt, Pembroke, Bermuda-based Tyco said today in a statement distributed by PRNewswire.

None of the debt will be redeemed as part of the settlement, according to the statement. Tyco will offer to exchange its notes due in 2028 and 2029 for notes that mature in 2019 and 2021 respectively, the company said.

The settlement is a victory for bondholders, whose trustee had sued, claiming Tyco unlawfully split into three separate companies without getting required approval from creditors. Tyco denied any wrongdoing. Last month, US District Judge Shira Scheindlin said in a 28-page decision that Tyco may have breached its agreement with owners of its debt.