Motorola offers to buy back up to $400 million in outstanding debt to reduce interest payments
By APWednesday, May 26, 2010
Motorola begins cash tender offer for $400M debt
SCHAUMBURG, Ill. — Cell phone maker Motorola Inc. said it has launched cash tender offers to buy back up to $400 million of its outstanding debt in a move to reduce interest payments.
The company late Monday announced two separate offerings that apply to multiple debt securities. The company is offering to buy any and all of its $251.9 million 5.22 percent debentures due 2097 through June 7. It also is offering to buy back via auction some of its $1.11 billion worth of 6.5 percent debentures due in 2025 and 2028 and its 6.625 percent senior notes due 2037 through June 21.
The total amount of debt that the company will repurchase in the combined offers is $400 million.
J.P. Morgan Securities Inc., Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. are acting as lead dealer managers.
Shares fell 16 cents to $6.57 in early afternoon trading.
