Arris Group plans $2.18 billion credit facility through BAML and RBC

By Sara Rosenberg

New York, Dec. 20 - Arris Group Inc. has received a commitment for a $2.175 billion senior secured credit facility, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Bank of America Merrill Lynch and RBC Capital Markets are the lead banks on the deal.

The facility consists of a $250 million revolver, a $1 billion five-year term loan A and a $925 million seven-year term loan B.

Covenants include total net leverage and interest coverage ratios.

Amortization on the term loan B is 1% per annum.

Proceeds will be used to help fund the acquisition of the Motorola Home business from Motorola Mobility for $2.35 billion in a cash-and-stock transaction.

Under the terms of the agreement, Google Inc., the parent of Motorola Mobility, will receive $2.05 billion in cash and about $300 million in newly issued Arris shares, representing a roughly 15.7% ownership interest in Arris post-closing.

The transaction is expected to close by the second quarter of 2013, subject to customary approvals and conditions.

Arris is a Suwanee, Ga.-based communications technology company. Motorola Home is a IP business.

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