Freescale acquired $10 million toggle notes at discount in third quarter, opts for PIK for Dec. 15

By Jennifer Chiou

New York, Oct. 23 - Freescale Semiconductor Inc. repurchased $10 million of its 9 1/8%/9 7/8% senior pay-in-kind toggle notes due 2014 at a $4 million discount during the third quarter, according to a 10-Q filing with the Securities and Exchange Commission.

On the back of its June 15 interest payment decision, Freescale has also elected to use the PIK feature of its toggle notes for the interest period ending on Dec. 15. Accordingly, as of Oct. 2, $16 million of accrued PIK interest associated with the notes was classified as long-term debt.

The Austin, Texas-based designer and manufacturer of embedded semiconductors added that during the first nine months of the year, Freescale bought back $29 million of its 8 7/8% senior fixed-rate notes due 2014 and $27 million total of the toggle notes at a $25 million discount.

The company said it used funds from its short-term investment portfolio for the purchase and early retirement of these notes.

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