Company to pursue debt financing for the acquisition of
Motorola’s Enterprise business
Lincolnshire, Ill., September 16, 2014 – Zebra Technologies Corporation (NASDAQ: ZBRA) today announced that it has begun to syndicate a $2 billion Senior Secured Term Loan (the “Term Loan”). Consummation of the Term Loan and actual terms of the Term Loan, including principal amount, interest rate and maturity, will depend on market and other conditions.
Proceeds from the Term Loan, together with cash on hand and proceeds from additional financing in the form of senior unsecured debt securities in an aggregate principal amount of $1.25 billion, will be used to fund the $3.45 billion cash acquisition of the Enterprise business of Motorola Solutions, Inc. (NYSE: MSI), as well as to pay related transaction fees and expenses. The acquisition, which was announced on April 15, 2014, is expected to be completed by the end of 2014.
Morgan Stanley Senior Funding, Inc., J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. will act as joint lead arrangers for the Term Loan. Morgan Stanley Senior Funding, Inc. and J.P. Morgan Securities LLC will act as joint book runners.
The debt securities will not be registered under the Securities Act of 1933, as amended (“Securities Act”), or the securities laws of any other jurisdiction, and will not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements. The debt securities offering will be made only to qualified institutional buyers in accordance with Rule 144A under the Securities Act and to non-U.S. persons in accordance with Regulation S under the Securities Act.
This press release is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any debt securities or any other securities. Any debt securities offering is not being made to any person in any jurisdiction in which the offer, solicitation or sale is unlawful.
This press release contains forward-looking statements within the meaning of federal securities laws. Statements related to, among other things, the consummation of the Term Loan, the proposed offering of any additional debt securities, potential changes in market conditions and any expectation regarding the closing of the acquisition constitute forward-looking statements. For a description of factors that may cause Zebra’s actual results, performance or expectations to differ from any forward-looking statements, please review the information under the heading “Risk Factors” included in Item 1A of Zebra’s 2013 Annual Report on Form 10-K and other documents of Zebra’s on file with or furnished to the Securities and Exchange Commission. Any forward-looking statements made in this press release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by Zebra will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Zebra or its business or operations. Except as required by law, Zebra undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. We caution you that actual outcomes and results may differ materially from what is expressed, implied or forecasted by Zebra’s forward-looking statements.
About Zebra Technologies
A global leader in enterprise asset intelligence, Zebra Technologies Corporation (NASDAQ: ZBRA) offers solutions that give a virtual voice to an organization’s assets, people and transactions, enabling organizations to unlock greater business value. The company’s extensive portfolio of innovative and reliable marking and printing products, RFID and real-time location solutions, illuminates mission-critical information that help customers take smarter business actions. For more information about Zebra’s solutions, visit http://www.zebra.com.
Douglas A Fox,CFA
Vice President, Investor Relations and Treasurer
+1 847 793 6735
Director, Corporate Communications and Public Relations
+ 1 847 793 5514