Motorola Solutions, Inc. (NYSE:MSI) Files An 8-K Entry into a Material Definitive Agreement
Item1.01
| Entry into a Material Definitive Agreement. |
On April25, 2017, Motorola Solutions, Inc. (the Company) entered
into a new revolving credit agreement (the New Credit Agreement)
with JPMorgan Chase Bank, N.A., as administrative agent (the
Agent), and the several lenders and agents party thereto. The New
Credit Agreement provides for a $2.2billion revolving credit
facility with a $500million letter of credit sublimit and matures
on April24, 2022, subject to the Companys option to extend the
maturity date for up to two one-year periods upon the terms and
conditions set forth in the New Credit Agreement.
The New Credit Agreement permits the Company to borrow syndicated
loans (the Syndicated Loans) and money market loans (the Money
Market Loans) from time to time for general corporate purposes.
Syndicated Loans under the New Credit Agreement bear interest at
a rate per annum equal to (i)the Base Rate as in effect from time
to time plus the Applicable Margin (each as defined in the New
Credit Agreement) based on the Companys corporate credit rating
or (ii)the Eurodollar Rate for the Interest Period (each as
defined in the New Credit Agreement) therefor plus the Applicable
Margin. Money Market Loans under the New Credit Agreement bear
interest at a rate per annum equal to (i)the LIBO Rate for the
Interest Period therefor plus or minus the LIBO Margin (each as
defined in the New Credit Agreement) quoted by the bank making
such loan or (ii)the Set Rate (as defined in the New Credit
Agreement) for the Interest Period therefor quoted by the bank
making such loan.
Certain other material terms of the New Credit Agreement include
(i)a financial covenant requiring the Company to maintain
compliance with a leverage ratio; (ii)restrictive covenants
(subject, in each case, to certain customary exceptions and
amounts) that limit the Companys ability to, among other things,
create liens and enter into sale and leaseback transactions;
(iii)customary events of default, upon the occurrence of which,
after any applicable grace period, the lenders will have the
ability to accelerate all outstanding loans thereunder and
terminate the commitments; and (iv)customary representations and
warranties. In addition, the Company has the ability at any time
to increase the aggregate commitments under the New Credit
Agreement from $2.2billion to $2.75billion by arranging with
existing lenders and/or new lenders for them to provide
additional commitments, subject to the condition that no default
or event of default shall have occurred and be continuing and
other terms and conditions set forth in the New Credit Agreement.
Some of the lenders under the New Credit Agreement and their
affiliates have various relationships with the Company and its
subsidiaries involving the provision of financial services,
including commercial investment banking, underwriting, foreign
exchange and other derivative arrangements.
The foregoing description of the New Credit Agreement is
qualified in its entirety by reference to the New Credit
Agreement filed as Exhibit 10.1 hereto and incorporated by
reference into this Item1.01.
| Item1.02. |
Termination of a Material Definitive Agreement. |
In connection with entering into the New Credit Agreement
described in Item1.01 of this Current Report on Form 8-K, the
Company terminated its existing revolving credit agreement, dated
as of May29, 2014, with JPMorgan Chase Bank, N.A., as
administrative agent, and the other financial institutions party
thereto (the Old Credit Agreement). There were no outstanding
loan borrowings under the Old Credit Agreement at the time of
termination and no early termination penalties were incurred by
the Company.
Item2.03 Creation of a Direct Financial Obligation or an
Obligation Under an Off-Balance Sheet Arrangement
of a Registrant.
The information
contained in Item1.01 of this Current Report on Form 8-K is
incorporated by reference into this Item2.03.
| Item9.01. | Financial Statements and Exhibits |
| (d) | Exhibits |
|
Exhibit No. |
Description | |
| 10.1 |
Revolving Credit Agreement dated as of April25, 2017 among the Company, JPMorgan Chase Bank, N.A., as administrative agent, and the several lenders and agents party thereto. |
About Motorola Solutions, Inc. (NYSE:MSI)
Motorola Solutions, Inc. is a provider of communication infrastructure, devices, accessories, software and services. The Company operates through two segments: Products and Services. Its Products segment offers a portfolio of infrastructure, devices, accessories and software. The Products segment has two product lines, including Devices and Systems. Its Devices includes two-way portable radios and vehicle-mounted radios; accessories, such as speaker microphones, batteries, earpieces, headsets, carry cases and cables, and software features and upgrades. Its Systems includes the radio network core and central processing software; base stations; consoles; repeaters, and software applications and features. Its Services segment provides a range of service offerings for government, public safety and commercial communication networks. The Services segment product lines include Integration services, Managed & Support services, and Integrated Digital Enhanced Network (iDEN) services. Motorola Solutions, Inc. (NYSE:MSI) Recent Trading Information
Motorola Solutions, Inc. (NYSE:MSI) closed its last trading session up +0.69 at 86.07 with 524,062 shares trading hands.