Freescale tightens offer price on $350 million term loan to par

By Sara Rosenberg

New York, Feb. 8 - Freescale Semiconductor Inc. revised the offer price on its $350 million senior secured term loan due December 2016 to par from an original issue discount of 991/2, according to a market source.

Also, the 101 soft call protection on the 2016 term loan was shortened to six months from one year, the source said.

Pricing on the 2016 loan was left at Libor plus 325 basis points with a 1% Libor floor.

The company is also getting a $2,391,000,000 senior secured term loan due 2020 that is priced at Libor plus 375 bps with a 1.25% Libor floor and an original issue discount of 99.

The 2020 loan still has 101 soft call protection for one year, the source continued.

Earlier in the syndication process, the 2020 loan was downsized from $2.73 billion to $2.38 billion as the 2016 loan was added to the capital structure. It has now been increased slightly.

Closing is expected on March 1, the company said in a news release.

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 new term loans (B).

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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