Motorola Solutions to buy $1 billion Silver Lake 1.75% notes due 2024

By Mary-Katherine Stinson

Lexington, Ky., Feb. 15 – Motorola Solutions, Inc. reached an agreement with the investment funds affiliated with Silver Lake Partners to settle their outstanding $1 billion 1.75% convertible notes due 2024, according to a press release and an 8-K filing with the Securities and Exchange Commission.

The company will repurchase the $1 billion of notes for a total consideration of $1.59 billion in cash, inclusive of a conversion premium.

As of Feb. 15, the notes are convertible into Motorola common stock based on a conversion rate of 4.9843 per $1,000 principal amount.

Settlement is expected to occur on or before March 28.

The buyback will be funded by cash on the company’s balance sheet and short-term borrowings including under its existing revolving credit facility.

None of the notes will remain outstanding after settlement.

The notes, originally scheduled to mature in September 2024, included a provision which gave Motorola Solutions the right to redeem a portion of the notes upon attainment of a specific Motorola Solutions share price over a specified period. Motorola Solutions had previously expressed its intention to potentially exercise this redemption right.

Motorola is a data communications and telecommunications equipment provider based in Chicago.

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