Summary
Motorola, Inc. (MSI) announced on October 22, 2001, its intention to issue $400 million in aggregate principal amount of senior notes due 2011. This issuance is aimed at strengthening the company's financial position by reducing existing short-term indebtedness and providing capital for general corporate purposes. Investors should note that these senior notes are being issued under Rule 135c of the Securities Act, meaning they are not initially registered with the SEC and may not be offered or sold within the United States without registration or an applicable exemption. However, Motorola has committed to filing a registration statement for an exchange offer related to these notes post-issuance. This move suggests a proactive approach to managing debt and ensuring the notes can be more freely traded in the future.
Key Highlights
- 1Motorola plans to issue $400 million in senior notes maturing in 2011.
- 2Proceeds from the note issuance will be used to reduce short-term debt.
- 3Remaining proceeds will be allocated for general corporate purposes.
- 4The notes are initially offered under Rule 135c, exempt from SEC registration.
- 5Motorola has agreed to file a registration statement for an exchange offer for these notes.
- 6This indicates a strategy to manage debt and improve future liquidity.
- 7The filing was made on October 21, 2001, with the SEC.