Summary
Motorola Solutions, Inc. (MSI) announced on March 24, 2021, the execution of a new $2.25 billion revolving credit agreement, replacing its previous facility. This new agreement, maturing in March 2026 with options to extend, provides the company with significant financial flexibility for general corporate purposes, including syndicated and money market loans. The facility also includes a sublimit for letters of credit and an option to increase the total commitments to $2.75 billion, subject to certain conditions. Key terms of the new agreement include customary covenants related to a leverage ratio, restrictions on liens and sale-leaseback transactions, and standard events of default. Notably, there were no outstanding borrowings under the old credit agreement at the time of termination, and no early termination penalties were incurred. This proactive refinancing demonstrates the company's commitment to maintaining a robust and adaptable liquidity position to support its ongoing operations and strategic initiatives.
Key Highlights
- 1Motorola Solutions entered into a new $2.25 billion revolving credit agreement, maturing on March 24, 2026.
- 2The new credit facility includes an option to extend the maturity date for up to two one-year periods.
- 3The agreement provides flexibility for general corporate purposes through syndicated and money market loans.
- 4A letter of credit sublimit of $450 million is included within the facility.
- 5The company has the option to increase the aggregate commitments to $2.75 billion.
- 6The previous credit agreement, dated April 25, 2017, was terminated without outstanding borrowings or early termination penalties.
- 7The new agreement includes a financial covenant requiring compliance with a leverage ratio and restrictive covenants.