Motorola Solutions gets $675 million term loan for Airwave purchase

By Marisa Wong

Morgantown, W.Va., Feb. 22 – Motorola Solutions, Inc. entered into a new $675 million term loan credit agreement on Feb. 18, according to an 8-K filing with the Securities and Exchange Commission.

Lloyds Securities Inc., Citigroup Global Markets Inc., MUFG, Wells Fargo Bank, NA, Bank of China, Chicago Branch and Bank of America Merrill Lynch are the joint lead arrangers and joint bookrunners with Lloyds Bank plc as administrative agent, Lloyds Securities as syndication agent and U.S. Bank NA, First Hawaiian Bank, PNC Bank, NA, BMO Harris Bank, NA and Mizuho Bank (USA) as documentation agents.

The term loan matures on Feb. 18, 2019.

Interest is equal to Libor plus an applicable margin based on the company’s corporate credit rating. The applicable margin ranges from 87.5 basis points to 187.5 bps.

The credit agreement includes a financial covenant requiring the company to maintain a leverage ratio of 4.25 to 1.00.

Motorola entered into the term loan in connection with and used proceeds to fund its acquisition of Airwave. Based in London Airwave delivers mission-critical voice and data communications to emergency and public service agencies in Britain, including police, fire, rescue and ambulance services.

The company’s borrowing capacity under its 2014 $2.1 billion unsecured syndicated revolver may be partially limited at the end of the first quarter of 2016 due to the additional debt incurred in connection with the new term loan, the filing noted.

Motorola is a telecommunications company based in Schaumburg, Ill.

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