NEW YORK (CNN/Money) - Shares of Tyco International gained more than 35 percent Thursday after the debt-laden company said it will raise as much as $5.8 billion through an initial public offering of its CIT financial services unit and cut jobs, consolidate headquarters and sell a number of assets, including corporate jets.

Tyco (TYC: up $3.75 to $13.90, Research, Estimates) said it will eliminate 115 corporate jobs and consolidation at offices in New Hampshire, New York and London will save it about $125 million a year.

The initial public offering of CIT Group Inc. is set to go public in early July, underwriters on the deal told CNN/Money Thursday.

CIT filed an amendment Wednesday to its registration statement and said it plans to sell 200 million shares at $25 to $29 each via co-lead underwriters Goldman Sachs and Lehman Brothers. J.P. Morgan, along with other investment banks, are included in the syndicate. The offering will trade on the New York Stock Exchange under the symbol "CIT."

The manufacturing conglomerate will need the proceeds as its debt rating was cut by Moody's Wednesday for the second time in a week, this time to "junk" status.

Moody's said in a statement that "even with the anticipated debt reduction from the CIT transaction, the potential risks attendant to the widening array of management and corporate governance issues at Tyco render the company's credit profile inconsistent with an investment-grade rating."

Standard & Poor's and Fitch Ratings also slashed Tyco's debt within the past week, with Fitch cutting it to junk as well. The reduced ratings make it more expensive for the company to raise capital in the event it has to borrow money to pay off its looming debt obligations.

As of March 31, the company had $20.5 billion in debt due within a year.

Also Wednesday, CIT restated its fiscal second-quarter financial statements to reflect a $4.5 billion writedown in goodwill.

In its amended quarterly filing, Tyco said it expects to take an additional $1.5 billion writedown, which represents the difference between the current carrying value of CIT and the low end of the company's estimated proceeds from the CIT IPO.

In a statement accompanying its downgrade last week, Fitch Ratings said Tyco's balance sheet contains $28 billion of goodwill and any additional writedowns will pressure a bank covenant, including a 52 percent debt-to-capital ratio for the company.

Tyco said it will need to do a secondary analysis of CIT's goodwill, which will be done after the IPO, allowing for Tyco to adjust CIT's book value against what the market brings in the offering.

Separately, the Securities and Exchange Commission reportedly is looking into how Tyco accounted for its many acquisitions over the years, which fueled its rapid profit growth. Tyco also said that the SEC will investigate Dennis Kozlowski, who resigned as CEO last week before being indicted on charges of sales tax evasion.  

--from staff and wire reports