2% senior note due 2020 converts to common stock at $68.50 per share
By Devika Patel
Knoxville, Tenn., Aug. 5 – Motorola Solutions, Inc. said it will conduct a $1 billion private placement of 2% convertible senior notes with Silver Lake Partners IV, LP and Silver Lake Partners IV Cayman (AIV II), LP.
The note is due in September 2020 and initially converts to common shares at $68.50 per share. The conversion price is a 13.75% premium to the Aug. 4 closing share price of $60.22 and is also a 17% premium to the 30-day volume-weighted average price of the stock on Aug. 4, the company said in a press release. The conversion rate is 14.5985 per $1,000 of notes.
Settlement is expected Aug. 25.
Proceeds will be used to accelerate growth in the company’s smart public safety solutions and services businesses.
Motorola is a communications technology company based in Schaumburg, Ill.
| Issuer: | Motorola Solutions, Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $1 billion
|
| Maturity: | September 2020
|
| Coupon: | 2%
|
| Conversion price: | $68.50
|
| Conversion premium: | 13.75%
|
| Conversion rate: | 14.5985
|
| Warrants: | No
|
| Investor: | Silver Lake Partners IV, LP and Silver Lake Partners IV Cayman (AIV II), LP
|
| Pricing date: | Aug. 5
|
| Settlement date: | Aug. 25
|
| Stock symbol: | NYSE: MSI
|
| Stock price: | $60.22 at close Aug. 4
|
| Market capitalization: | $13.5 billion
|
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