Freescale unit to pay $719 million to redeem 10 1/8% notes, some 8.05% notes and floaters

By Susanna Moon

Chicago, Feb. 18 - Freescale Semiconductor, Ltd. laid out its subsidiary's plans to use about $719 million to redeem all of its outstanding 10 1/8% senior subordinated notes due 2016, some of its outstanding 8.05% senior notes due 2020 and all of its senior floating-rate notes due 2014.

The company's indirect wholly owned subsidiary Freescale Semiconductor, Inc. plans to redeem the notes using proceeds of the company's public offering of stock, according to an 8-K filing with the Securities and Exchange Commission. The planned redemptions for the 10 1/8% notes and the 8.05% notes were announced Feb. 10.

Freescale will redeem the following amounts at a purchase price plus accrued interest to but excluding the redemption date:

• $264 million principal amount of the 10 1/8% notes at 101.688% of par;

• $262.5 million principal amount of the 8.05% notes at 108.05% of par and $96.5 million principal amount of the 8.05% notes at par; and

• $57 million principal amount of the floaters at par.

The company will issue the redemption notices 30 days from closing of the offering.

The 8.05% notes will be redeemed in amounts of $2,000 or whole multiples of $1,000 after that, and no 8.05% notes of less than $2,000 will be redeemed, the filing noted.

The company entered into an underwriting agreement on Feb. 11 with Goldman, Sachs & Co., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. as underwriters for the public offering of 40.25 million common shares at $18.50 per share, including a greenshoe for 5.25 million shares.

The Austin, Texas-based semiconductor and microelectronics company.

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