Freescale launches $2.73 billion term loan at Libor plus 375 bps

By Sara Rosenberg

New York, Jan. 30 - Freescale Semiconductor Inc. held a call at 1:30 p.m. ET on Wednesday to launch a $2.73 billion senior secured term loan due in 2020 that is talked at Libor plus 375 basis points with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for one year, the source said.

Commitments are due on Feb. 6.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the lead banks on the deal.

Proceeds will be used to repay the company's existing term loans.

The refinancing is expected to, among other things, extend the maturity of Freescale's term loans from 2016 and 2019.

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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