By Paul A. Harris
Portland, Ore., Sept. 30 – Zebra Technologies Corp. launched and priced a downsized $1.05 billion issue of eight-year senior notes (B2/B/) at par to yield 7¼% on Tuesday, according to a syndicate source.
The deal was downsized from $1.25 billion, with $200 million of proceeds being shifted to the term loan, increasing its size to $2.2 billion from $2 billion.
The yield printed at the tight end of the 7¼% to 7½% yield talk.
During the time that the deal was in the market the company added registration rights to the notes, making the deal a Rule 144A with registration rights offering. It had previously been in the market as a Rule 144A for life offering.
Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC were the joint bookrunners.
The Lincolnshire, Ill.-based printing technologies company plans to use the proceeds, together with a new term loan and cash on hand, to help fund the acquisition of Motorola Solutions, Inc.’s enterprise business.
| Issuer: | Zebra Technologies Corp.
|
| Amount: | $1.05 billion, decreased from $1.25 billion
|
| Maturity: | Oct. 15, 2022
|
| Securities: | Senior notes
|
| Bookrunners: | Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC
|
| Senior lead manager: | Deutsche Bank Securities Inc.
|
| Senior co-managers: | HSBC Securities (USA) Inc., RBS Securities Inc.
|
| Co-managers: | MUFG, PNC Capital Markets LLC
|
| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| Spread: | 494 bps
|
| First call: | Oct. 15, 2017 at 105.438
|
| Trade date: | Sept. 30
|
| Settlement date: | Oct. 15
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A with registration rights (changed from Rule 144A for life)
|
| Price talk: | 7¼% to 7½%
|
| Marketing: | Roadshow
|
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