AUSTIN, TX /BUSINESS WIRE/ -- Freescale Semiconductor Ltd. announced that Freescale Semiconductor, its wholly owned indirect subsidiary, is seeking commitments for a new senior secured term loan facility under its existing senior secured credit facilities in an aggregate principal amount of up to $300,000,000. The proceeds from the new term loan are intended to be used to redeem, repurchase, or otherwise acquire all of Freescale's outstanding 10⅛% senior secured notes due 2018 and a portion of its 9¼% senior secured notes due 2018, and to pay related redemption premiums and fees. Freescale will pay for a portion of its expenses with cash on hand. The foregoing does not constitute a notice of redemption for any outstanding notes. The purposes of the transaction and the application of the proceeds are to extend a portion of Freescale's debt maturities and reduce interest expense. The new term loan facility would be affected as an amendment to Freescale's existing senior secured credit facilities subject to customary conditions. There can be no assurance that the company will be successful in obtaining the new term loan facility on reasonably acceptable terms, or at all.
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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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