Freescale launches $500 million incremental term loan B to lenders

By Sara Rosenberg

New York, Feb. 16 - Freescale Semiconductor Inc. held a conference call at noon ET on Thursday to launch a proposed $500 million senior secured seven-year incremental term loan B, according to market sources.

J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are the lead banks on the deal.

The term loan B is talked at Libor plus 450 basis points to 475 bps with a 1.25% Libor floor and an original issue discount of 99, sources said.

There is 101 soft call protection for one year.

Proceeds will be used to partially redeem the company's 10 1/8% senior subordinated notes due December 2016 and, at the company's option, a portion of its senior notes due 2014.

The new term loan would be effected as amendments to the company's existing senior secured credit facility and is subject to lender consent and other customary conditions.

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

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