Daily News: February 11, 2013

Freescale Says New Secured Term Loan Set to Close


Freescale Semiconductor announced that it 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.

Freescale said the proposed new term loan facility provides for two term loan tranches in an aggregate principal amount of approximately $2.741 billion, consisting of a $350 million term loan that will mature in December 2016 and a $2.391 billion term loan that will mature in March 2020.

The $350 million term loan is expected to bear interest at a rate equal to LIBOR plus 3.25% (with LIBOR of not less than 1%), and the $2.391 billion 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 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.

According to an 8-K filing dated February 28, 2012, J.P. Morgan Securities, Citigroup Global Markets and Credit Suisse Securities acted as co-lead arrangers on a $500 million tranche B term loan.