Summary
Motorola, Inc. (MSI) filed an 8-K report on November 2, 2001, detailing the closing of a significant financing transaction on October 31, 2001. The company successfully sold $1,050 million of 7.00% Equity Security Units. These units are comprised of purchase contracts for future common stock acquisition and 6.50% Senior Notes due in 2007. This issuance, combined with a concurrent private placement of $600 million of 8.00% notes due 2011, is intended to reduce short-term indebtedness and fund general corporate purposes. The financing demonstrates Motorola's proactive management of its balance sheet. The use of equity security units and senior notes provides a diversified approach to capital raising, aiming to strengthen its financial position. Investors should note the forward-looking nature of the common stock purchase component of the units, with the purchase date set for November 16, 2004. This filing indicates a strategic move by the company to enhance its financial flexibility during a period where such actions are crucial.
Key Highlights
- 1Motorola, Inc. closed the sale of $1,050 million in 7.00% Equity Security Units on October 31, 2001.
- 2The Equity Security Units consist of purchase contracts for common stock and 6.50% Senior Notes due November 16, 2007.
- 3The company also completed a concurrent private placement of $600 million in 8.00% notes due 2011.
- 4Proceeds from both issuances will be used to reduce short-term indebtedness and for general corporate purposes.
- 5The Equity Security Units were sold under the company's existing shelf registration for various securities.
- 6The common stock purchase component of the units is set for November 16, 2004.
- 7Key underlying documents related to the issuance were filed as exhibits to this 8-K.