Zebra Technologies ups term B to $2.2 billion, finalizes pricing

By Sara Rosenberg

New York, Sept. 30 – Zebra Technologies Corp. upsized its seven-year term loan B to $2.2 billion from $2 billion and firmed pricing at Libor plus 400 basis points, the high end of revised talk of Libor plus 375 bps to 400 bps and up from initial talk of Libor plus 350 bps to 375 bps, according to a market source.

In addition, the original issue discount on the term loan B was tightened to 99¼ from 99, the source said.

The term loan B still has a 0.75% Libor floor and 101 soft call protection for one year, which was extended from six months earlier this week.

Upon the first round of updates to the loan, the MFN sunset was eliminated.

The company’s now $2.45 billion senior secured credit facility, up from $2.25 billion, also includes a $250 million revolver.

Morgan Stanley Senior Funding Inc. and J.P. Morgan Securities LLC are the joint bookrunners on the deal and joint lead arrangers with Deutsche Bank Securities Inc.

Recommitments were due at 3 p.m. ET on Tuesday.

Proceeds will be used to help fund the $3.45 billion acquisition of Motorola Solutions Inc.’s enterprise business.

Other funds for the transaction will come from $1.05 billion of notes, reduced from $1.25 billion with the term loan B upsizing, and cash on hand.

Closing is expected by the end of the year.

Zebra is a Lincolnshire, Ill.-based provider of marking and printing technologies.

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