Freescale retranches to add $350 million shorter-dated term loan

By Sara Rosenberg

New York, Feb. 6 - Freescale Semiconductor Inc. added a $350 million senior secured term loan due December 2016 to its capital structure and downsized its senior secured term loan due in 2020 to $2.38 billion from $2.73 billion, according to a market source.

Price talk on the 2016 tranche is Libor plus 325 basis points with a 1% Libor floor and an original issue discount of 991/2, the source said.

The 2020 tranche continues to be talked at Libor plus 375 bps with a 1.25% Libor floor and an original issue discount of 99.

Both term loans have 101 soft call protection for one year, the source said.

Recommitments are due at noon ET on Thursday.

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 that are due in 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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