Summary
Motorola Solutions, Inc. (MSI) has announced the successful closing of a public underwritten offering of $1.3 billion in senior notes. This offering includes $400 million of 5.000% senior notes due 2029 and $900 million of 5.400% senior notes due 2034. The issuance of these new notes is a strategic move to manage the company's existing debt obligations and strengthen its financial flexibility. The primary use of the net proceeds from this offering is to repurchase $1.0 billion aggregate principal amount of 1.75% convertible notes due 2024 and to pay down $313 million in aggregate principal amount of the Company’s outstanding 4.000% senior notes due 2024. These debt repurchases indicate a proactive approach to optimizing the company's capital structure, potentially reducing interest expenses and managing upcoming maturities.
Key Highlights
- 1Completed a $1.3 billion public offering of senior notes (5.000% due 2029 and 5.400% due 2034).
- 2Net proceeds will be used to repurchase $1.0 billion of 1.75% convertible notes due 2024.
- 3Net proceeds will also be used to pay down $313 million of 4.000% senior notes due 2024.
- 4The offering aims to proactively manage debt maturity and capital structure.
- 5Notes were issued under a registration statement on Form S-3.
- 6Underwriting Agreement dated March 11, 2024, governs the offering.
- 7Remaining proceeds are allocated for general corporate purposes.