Freescale Offers $5.95B in Notes for Buyout
By Colleen Taylor -- EDN, November 3, 2006
Freescale Semiconductor Inc. today announced it is offering a total of $5.95 billion in senior notes as part of a funding program for its buyout plan.
In a statement, Freescale said its holding company, Firestone Acquisition Corp., intends to offer an aggregate of $4.35 billion principal amount of senior notes, comprised of floating rate notes, fixed rate notes and PIK-election notes, and $1.6 billion of senior subordinated notes.
Firestone Acquisition Corp. was formed in connection with Freescale's $17.6 billion buyout by a private equity consortium led by The Blackstone Group and including The Carlyle Group, Permira and Texas Pacific Group. Austin-based Freescale settled on plans for a buyout in September after mulling over a bevy of options for the company's direction following its 2004 IPO, including a mulled-over merger with the semiconductor division of Royal Philips Electronics.
Freescale said it will assume all of the obligations under the notes upon consummation of the merger. The net proceeds from the offering of the notes, together with other financing sources, will be used to consummate the merger and related transactions.
