Freescale to pay off $532 million revolver, $356 million of notes

By Toni Weeks

San Diego, May 26 - Freescale Semiconductor Holdings I, Ltd. said that the proceeds from its $783 million initial public offering of stock together with cash on hand will be contributed to Freescale, Inc., the company's indirect wholly owned subsidiary and main U.S. operating entity, for purposes of reducing debt.

Specifically, the company intends to eliminate $888 million of debt by making the following payments:

• The full amount of outstanding debt, which was $532 million at April 30, under Freescale's revolving credit facility;

• $93 million principal amount of 9 1/8%/9 7/8% senior PIK-election notes due 2014; and

• $263 million principal amount of 10¾% senior notes due 2020.

The IPO priced May 25 and is expected to settle June 1, according to an FWP filing with the Securities and Exchange Commission.

Based in Austin, Texas, the company provides semiconductors, microprocessors and microcontroller solutions to the automotive, industrial and consumer markets.

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