Daily News: March 2, 2012

Freescale Completes New Term Loan With Citibank


Freescale Semiconductor Holdings I, Ltd. announced that Freescale Semiconductor, Inc., its wholly owned indirect subsidiary, completed the previously announced financing under its existing senior secured credit facilities. Citibank is acting as administrative agent for the lenders.

Freescale amended its credit facility to, among other things, enter into a new senior secured term loan facility in an aggregate principal amount of $500 million.

Borrowings under the new term loan facility bear interest, at a rate equal to (i) for eurocurrency rate loans, LIBOR plus 4.75% (with LIBOR of not less than 1.25%) and (ii) for base rate loans, the applicable base rate plus 3.75%. The new term loans will mature on February 28, 2019, which maturity will be accelerated to December 15, 2017 if, as of December 1, 2017, Freescale fails to maintain a specified leverage ratio and the aggregate principal amount of its secured notes due 2018 exceeds $500 million.

The new term loans are guaranteed by the same guarantors of the existing term loans under the credit facility and are secured by the same collateral securing the existing term loans under the credit facility. The new term loans will otherwise have substantially the same terms and conditions as the existing term loans under the credit facility. The amendment to the credit facility closed on February 28, 2012.

Freescale Semiconductor Holdings I, Ltd. is a provider in embedded processing solutions, providing industry leading products that are advancing the automotive, consumer, industrial and networking markets.

Previously on abfjournal.com:

Freescale Seeks Commitments for New Term Loan, Friday, February 17, 2012