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Motorola Solutions enters $2.25 billion five-year revolving facility
By Marisa Wong
Los Angeles, March 26 – Motorola Solutions, Inc. entered into a new revolving credit agreement on March 24 for a $2.25 billion revolver with a $450 million letter-of-credit sublimit that matures on March 24, 2026, according to an 8-K filing with the Securities and Exchange Commission.
The maturity date may be extended for up to two one-year periods.
Aggregate commitments may be increased to $2.75 billion, subject to existing lenders or new lenders agreeing to provide the additional commitments.
The credit agreement permits the company to borrow syndicated loans and money market loans from time to time for general corporate purposes.
Syndicated loans bear interest at Libor plus an applicable margin ranging from 87.5 basis points to 187.5 bps, depending on ratings.
The commitment fee ranges from 10 bps to 30 bps, also based on ratings.
The credit agreement includes a financial covenant requiring the company to maintain compliance with a leverage ratio.
JPMorgan Chase Bank, NA, Deutsche Bank Securities Inc., BofA Securities, Inc., Goldman Sachs Bank USA, Mizuho Bank, Ltd. and Toronto-Dominion Bank, New York Branch are the joint lead arrangers and joint bookrunners for the new revolver with JPMorgan Chase Bank as administrative agent.
In connection with entering into the new credit agreement, Motorola terminated its existing revolving credit agreement, dated April 25, 2017 with JPMorgan Chase Bank as administrative agent. There were no outstanding borrowings under the old facility, and no early termination penalties were incurred by the company.
The communications equipment company is based in Chicago.
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