Motorola Solutions offers to repurchase up to $275 million 4% notes due 2024

By Rebecca Melvin

Concord, N.H., May 17 – Motorola Solutions, Inc. began a cash tender offer for up to $275 million of its 4% senior notes due 2024 (ISIN: US620076BF55) on Tuesday, according to a company release.

There is $588,417,000 principal amount of the notes outstanding.

The company will pay a fixed spread of 85 basis points over the 2.5% Treasury note due April 30, 2024.

The total consideration will include an early tender premium of $30 per $1,000 principal amount of notes tendered by the early tender deadline of 5 p.m. ET on May 31.

The company will also pay accrued interest up to but excluding the applicable settlement date.

Pricing will be set at 9 a.m. ET on June 1.

The tender offer expires at 11:59 p.m. ET on June 14.

The company has set a June 2 early settlement date and a June 16 settlement date for notes tendered after the early tender deadline and before expiration.

The company plans to fund the tender with proceeds from the issuance and sale of debt securities in one or more capital markets transaction.

The purpose of the tender offer is to repurchase a portion of the company’s outstanding debt and to extend the average maturity of the company’s long-term indebtedness.

The dealer managers are Deutsche Bank Securities Inc. (212 250-2955 or 866 627-0391) and TD Securities (USA) LLC (212 827-7795, 866 584-2096 or LM@tdsecurities.com).

The information agent is Global Bondholder Services Corp. (212 430-3774 or 866 807-2200).

Motorola is a data communications and telecommunications equipment provider based in Chicago.

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