Freescale Announces Proposed Loan AllocationsFebruary 12, 2013
The term loan facility reduces indebtedness currently due in 2016 and extends to 2020 the maturities of the company’s indebtedness currently due in 2019 and a portion of its indebtedness currently due in 2016.
AUSTIN, TX /BUSINESS WIRE/ -- Freescale Semiconductor, a wholly owned subsidiary of Freescale Semiconductor Ltd., announced that Freescale has been advised by the lead arranger under its proposed new senior secured term loan facility that the arrangers have received sufficient orders to allocate and close the proposed new term loan facility. The proposed new term loan facility reduces indebtedness currently due in 2016 and extends to 2020 the maturities of our indebtedness currently due in 2019 and a portion of our indebtedness currently due in 2016. The proposed new term loan facility provides for two term loan tranches in an aggregate principal amount of approximately $2,741,000,000, consisting of a $350,000,000 term loan that will mature in December 2016 and a $2,391,000,000 term loan that will mature in March 2020. The maturity of the 2020 term loan may be accelerated to December 2017 under specified circumstances. The $350,000,000 term loan is expected to bear interest at a rate equal to LIBOR plus 3.25% (with LIBOR of not less than 1.00%), and the $2,391,000,000 term loan is expected to bear interest at a rate equal to LIBOR plus 3.75% (with LIBOR of not less than 1.25%). The closing of the proposed new term loan facility, which is expected to occur on March 1, 2013, is subject to customary conditions, and there can be no assurance that Freescale will be successful in obtaining the proposed new term loan facility on reasonably acceptable terms, or at all.
Freescale Semiconductor is a global leader in embedded processing solutions, providing industry-leading products advancing the automotive, consumer, industrial, and networking markets. From microprocessors and microcontrollers to sensors, analog integrated circuits, and connectivity, our technologies are the foundation for the innovations that make our world greener, safer, healthier, and more connected. Some of our key applications and end-markets include automotive safety, hybrid and all-electric vehicles, next-generation wireless infrastructure, smart energy management, portable medical devices, consumer appliances, and smart mobile devices. The company is based in Austin, TX, and has design, research and development, manufacturing, and sales operations around the world.
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