Summary
Motorola Solutions, Inc. (MSI) announced on April 27, 2017, the execution of a new $2.2 billion revolving credit agreement, effective April 25, 2017. This new facility, which matures on April 24, 2022, replaces the company's previous credit agreement and provides significant financial flexibility. The agreement includes an option for the company to extend the maturity date, underscoring management's confidence in future operations and financial stability. This move is generally positive for investors as it demonstrates robust access to capital and prudent financial management. The new credit facility can be used for general corporate purposes and has the potential to be increased to $2.75 billion, indicating ample room for future growth or strategic initiatives. The termination of the old agreement was done without outstanding borrowings or penalties, suggesting a seamless transition and efficient capital structure management.
Key Highlights
- 1Entered into a new $2.2 billion revolving credit agreement, effective April 25, 2017.
- 2The new credit facility matures on April 24, 2022, with options to extend for two one-year periods.
- 3The agreement allows for borrowings for general corporate purposes, including syndicated and money market loans.
- 4Includes a financial covenant requiring compliance with a leverage ratio.
- 5Features restrictive covenants limiting liens and sale-leaseback transactions.
- 6The company has the option to increase the aggregate commitments up to $2.75 billion.
- 7The previous revolving credit agreement was terminated without outstanding borrowings or early termination penalties.