By Paul A. Harris
St. Louis, Feb. 9 - Freescale Semiconductor, Inc. priced a restructured $750 million issue of eight-year senior secured first-lien notes (B2/B-/) at par to yield 10 1/8% on Tuesday, according to an informed source.
The yield printed in the middle of price talk that had the notes pricing at par to yield 10% to 10¼%.
The maturity of the notes was decreased to eight years from 10 years. Call protection was decreased to four years from five years.
There is a change-of-control put at 101% plus accrued interest.
J.P. Morgan Securities Inc., Citigroup Global Markets Inc. and Credit Suisse Securities were the bookrunners.
Proceeds will be used to repay the company's senior credit facilities.
Freescale is an Austin, Texas-based designer and manufacturer of embedded processors.
| Issuer: | Freescale Semiconductor, Inc.
|
| Amount: | $750 million
|
| Maturity: | March 15, 2018 (maturity decreased from 10 years)
|
| Securities: | Senior secured first-lien notes
|
| Bookrunners: | J.P. Morgan Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities
|
| Coupon: | 10 1/8%
|
| Price: | Par
|
| Yield: | 10 1/8%
|
| Spread: | 679 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until March 15, 2014, then callable at 105.063, 102.531, par on and after March 15, 2016 (call protection decreased from five years)
|
| Equity clawback: | 35% at 110.125 until March 15, 2013
|
| Change-of-control put: | 101% plus accrued interest
|
| Trade date: | Feb. 9
|
| Settlement date: | Feb. 19
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 10% to 10¼% at par
|
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