What is the main purpose of this 8-K filing?

This filing primarily announces significant corporate actions: the completion of the separation of Motorola Mobility Holdings, Inc. into a separate public company, the company's name change from Motorola, Inc. to Motorola Solutions, Inc., and the execution of a new $1.5 billion credit facility.

What does the separation of Motorola Mobility mean for Motorola Solutions shareholders?

Shareholders of Motorola, Inc. as of a record date received one share of Motorola Mobility Holdings common stock for every eight shares of Motorola, Inc. held. Following the separation, Motorola Solutions, Inc. will no longer report or consolidate Motorola Mobility's financial results, operating as a distinct entity focused on different business lines.

What are the key terms of the new credit agreement?

The new $1.5 billion revolving credit agreement matures on June 30, 2014, and is available for general corporate purposes. It allows for syndicated and money market loans with interest rates tied to Base Rate or Eurodollar Rate (for syndicated loans) and LIBO Rate or Set Rate (for money market loans), plus applicable margins. It also includes financial covenants and restrictive covenants typical for such agreements.

What happened to the old Motorola credit agreement?

The previous Five-Year Credit Agreement, dated December 14, 2006, was terminated in connection with the new credit agreement. Importantly, there were no outstanding loan borrowings under the old agreement at the time of termination, and no early termination penalties were incurred by the company.

MSI 8-K: Acquisitions & Dispositions, Material Agreements & More

Summary

This 8-K filing by Motorola Solutions, Inc. (formerly Motorola, Inc.) on January 10, 2011, primarily details significant corporate restructuring events that became effective on January 4, 2011. The most impactful for investors is the completion of the separation of Motorola Mobility Holdings, Inc. into an independent publicly traded company. This separation means Motorola Solutions will no longer consolidate Motorola Mobility's financial results. Additionally, Motorola, Inc. underwent a one-for-seven reverse stock split and officially changed its name to Motorola Solutions, Inc., with its stock continuing to trade under the new symbol "MSI." The filing also announces the entry into a new $1.5 billion revolving credit agreement by Motorola Solutions, Inc., maturing in June 2014. This new facility replaces an older agreement and is intended for general corporate purposes, including commercial paper backup. The company terminated its previous credit agreement without incurring early termination penalties, as no borrowings were outstanding.

Key Highlights

1Completion of the spin-off of Motorola Mobility Holdings, Inc. as an independent company.
2Motorola Solutions, Inc. will no longer consolidate Motorola Mobility's financial results.
3Effective January 4, 2011, Motorola, Inc. officially changed its name to Motorola Solutions, Inc.
4A one-for-seven (1:7) reverse stock split was completed.
5New ticker symbol for Motorola Solutions, Inc. on the NYSE is "MSI."
6Entered into a new $1.5 billion revolving credit agreement maturing June 30, 2014.
7Previous credit agreement was terminated with no outstanding borrowings or penalties.

Motorola Solutions, Inc. 8-K Report, Material Agreement (Jan 10, 2011)

Summary

Key Highlights

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