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.