Aug. 12 (Bloomberg) -- Motorola Solutions Inc., the maker of two-way radios and other communications equipment, is planning a $1.4 billion bond sale to help fund pension contributions and refinance existing debt, according to Moody’s Investors Service.
The company intends to sell seven-, 10- and 30-year bonds, according to a person with knowledge of the transaction, who asked not to be identified, citing lack of authorization to speak publicly. The offering will be Motorola’s biggest bond sale since 2007, according to data compiled by Bloomberg.
Proceeds will be used for general corporate purposes, including pension contributions and the redemption of the company’s $400 million of 6 percent senior notes due 2017, according to a regulatory filing.
Recommended For You
Those securities were priced to yield 165 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg. Based on trading prices of Motorola’s bonds in the secondary market, its new 10-year issue may pay an extra yield of about 168 basis points, according to Bloomberg New Issue Analytics.
The company’s net pension obligation totaled $1.2 billion in the U.S. as of the end of fiscal year 2013, according to a statement from Moody’s analysts led by Matthew Jones.
Motorola Solutions last issued bonds in February 2013, when it sold $600 million of 3.5 percent notes due 2023 that yielded 175 basis points more than Treasuries, Bloomberg data show.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
