Freescale to get LBO financing facility via Credit Suisse, Citi

By Sara Rosenberg

New York, Sept. 15 - Freescale Semiconductor Inc. plans to get a new credit facility via lead banks Credit Suisse and Citigroup to help back its leveraged buyout by a private equity consortium, according to a market source.

The consortium, which is led by The Blackstone Group and includes The Carlyle Group, Permira Funds and Texas Pacific Group, is purchasing the company for $40.00 per share in cash. The total equity value of the transaction is $17.6 billion.

It is anticipated that as part of the LBO, substantially all of the company's outstanding notes will either be tendered for or repaid.

The merger is subject to customary conditions to closing, including Freescale stockholder approval and requisite antitrust approvals.

Freescale is an Austin, Texas, designer and manufacturer of embedded semiconductors for the automotive, consumer, industrial, networking and wireless markets.

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