AUSTIN, Texas--(BUSINESS WIRE)--Freescale Semiconductor, Ltd., (NYSE: FSL) (the “Company”) announced today that Freescale Semiconductor, Inc. (“Freescale”), its wholly owned indirect subsidiary, is seeking to (i) lower the interest rate of its existing senior secured term loan facility maturing in 2016 with an aggregate outstanding principal amount of $347 million (the “2016 Term Loan”) and extend the maturity to 2020; (ii) lower the interest rate applicable to its existing senior secured term loan facility maturing in 2020 with an aggregate outstanding principal amount of $2.37 billion (the “2020 Term Loan”); and (iii) receive commitments for a new senior secured term loan facility under its existing senior secured credit facilities. The proceeds from the new term loan are intended to be used to refinance any portion of the 2016 Term Loan and 2020 Term Loan not so amended. The Company intends to pay fees and expenses with cash on hand. The purposes of these transactions and the application of the proceeds are to extend a portion of Freescale’s debt maturities and reduce interest expense. The extension, repricing and new term loan facility would be effected as an amendment to Freescale's existing senior secured credit facilities subject to customary conditions. There can be no assurance that the company will be successful in obtaining the new term loan facility on reasonably acceptable terms, or at all.
This press release shall not constitute the solicitation of an offer to sell or an offer to buy any securities.
Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to the proposed amendment and other statements that are not historical fact. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. Actual results and trends in the future may differ materially from those suggested or implied by the forward-looking statements depending on a variety of factors. Some of these factors include market conditions, customary closing conditions and such other risk factors as may be discussed in Freescale Semiconductor, Ltd.’s filings with the Securities and Exchange Commission. We undertake no obligation to update any information contained in this press release.
About Freescale Semiconductor
Freescale Semiconductor (NYSE:FSL) is a global leader in embedded processing solutions, providing industry leading products that are advancing the automotive, consumer, industrial and networking markets. From microprocessors and microcontrollers to sensors, analog integrated circuits and connectivity - our technologies are the foundation for the innovations that make our world greener, safer, healthier and more connected. Some of our key applications and end-markets include automotive safety, hybrid and all-electric vehicles, next generation wireless infrastructure, smart energy management, portable medical devices, consumer appliances and smart mobile devices. The company is based in Austin, Texas, and has design, research and development, manufacturing and sales operations around the world. www.freescale.com
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