8-KOther Events

Motorola Solutions, Inc. 8-K Report, Corporate Update (Sep 23, 2019)

Filed September 23, 2019For Securities:MSI

Summary

Motorola Solutions, Inc. (MSI) announced the establishment of an unsecured commercial paper note program on September 20, 2019. This program allows the company to issue short-term debt notes, with maturities up to 397 days, up to an aggregate amount of $2.2 billion. The primary purpose of this program is to provide readily available funds for general corporate purposes, enhancing the company's financial flexibility and liquidity. The commercial paper notes will be unsecured and rank equally with the company's other unsubordinated debt. Crucially, the entire program is backstopped by MSI's existing $2.2 billion unsecured revolving credit facility, providing a safety net and ensuring the program's operational integrity. This move suggests a proactive approach to managing short-term funding needs and potentially optimizing its capital structure.

Key Highlights

  • 1Establishment of a $2.2 billion unsecured commercial paper note program.
  • 2Program allows for issuance of notes with maturities up to 397 days.
  • 3Proceeds from the program are intended for general corporate purposes.
  • 4Commercial paper notes will be unsecured and rank pari passu with other unsubordinated debt.
  • 5The entire program is backstopped by a $2.2 billion unsecured revolving credit facility.
  • 6Demonstrates proactive management of short-term liquidity and funding needs.

Frequently Asked Questions

The Commercial Paper Program allows Motorola Solutions to issue short-term debt (commercial paper notes) to raise funds for general corporate purposes. This provides a flexible and accessible source of capital for the company's ongoing operational and strategic needs.

The company can have up to an aggregate amount of $2.2 billion outstanding at any time under this Commercial Paper Program.

The commercial paper notes can have maturities that vary, but will not exceed 397 days from the date of issuance.

No, the commercial paper notes are unsecured. However, the program is fully backstopped by Motorola Solutions' $2.2 billion unsecured revolving credit facility, meaning there is a reliable source of funding if the company cannot issue commercial paper.