Citigroup, J.P. Morgan, Deutsche Bank and Credit Suisse have scheduled a conference call for 1:30 p.m. EST today to launch a $2.73 billion, seven-year covenant-lite term loan for Freescale Semiconductor, according to sources.
Proceeds from the loan will be used to refinance the company’s $2.22 billion extended term loan due 2016 and its $492 million incremental term loan due 2019, which is priced at L+475, with a 1.25% LIBOR floor.
The company last tapped the loan market in February 2012 for a $500 million incremental loan, proceeds of which were used to redeem a portion of the chip-maker’s 10.125% subordinated notes due 2016. The incremental loan is covered by a 101 soft call premium that rolls off in late February.
Austin, Texas-based Freescale makes embedded semiconductors for the automotive, consumer, industrial, and networking markets. Corporate ratings are B/B2. – Kerry Kantin