Motorola ups convertibles to $1 bln, revises talk to 6.75-7.0% yield, up 20-22%

By Ronda Fears

Nashville, Tenn., Oct. 25 - On heavy demand, Motorola Inc. upsized its convertible offering to $1 billion from $875 million and revised pricing guidance to richer terms, according to market sources. The revisions came just hours before the deal was to price alongside $400 million of senior notes. The new price talk moved the yield to a range of 6.75% to 7.0% from 7.0% to 7.5%, and the initial conversion premium was amended to a range of 20% to 22% from 18% to 20%.

Goldman Sachs & Co., J.P. Morgan Chase and Salomon Smith Barney are joint lead managers of the registered convertible deal, which was set to price after market close Thursday.

The wireless phone maker plans to use proceeds to pay down short-term debt and general corporate purposes.

Motorola common shares closed down 37 cents to $17.28. End

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