Motorola $875 mln convertibles talked at 7.0%-7.5% yield, 18%-22%% premium

By Ronda Fears

Nashville, Tenn., Oct. 23 - Motorola Inc.'s $875 million of three-year mandatory convertibles are talked to price to yield 7.0% to 7.5% with an 18% to 22% initial conversion premium. Goldman Sachs & Co., J.P. Morgan and Salomon Smith Narney are joint lead managers of the registered deal, which is scheduled to price after the market close Thursday.

There is a $125 million greenshoe available on the convertible offering. The three-year issue will be non-callable.

In the Rule 144A market, Motorola also is selling $400 million of 10-year senior notes.

The Schaumburg, Ill.-based wireless phone maker said it would use proceeds from the offerings to pay down short-term debt and general corporate purposes.

Motorola common shares closed down 45c to $17.50.

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