Freescale loans react to purchase by NXP; Hanson Building Products updates deal again

By Sara Rosenberg

New York, March 2 – Freescale Semiconductor, Inc.’s term loans moved around in the secondary market during Monday’s trading session on news that the company is being acquired by NXP Semiconductors NV.

Over in the primary market, Hanson Building Products moved some funds to its first-lien term loan from its second-lien term loan and modified the offer price on the first-lien debt.

Also, Ineos Finance plc, Surgical Care Affiliates Inc., Coinmach (CSC Serviceworks), Lions Gate Entertainment Corp. and C&J Energy Services Inc. emerged with new loan plans.

Freescale Semiconductor’s term loan B-4 was stronger and its term loan B-5 was weaker on Monday following the announcement that it is being bought by NXP Semiconductors, according to traders.

Freescale’s term loan B-4 was quoted by one trader at par bid, par 3/8 offered, up from 99 7/8 bid, par 1/8 offered, and by a second trader at par bid, par ¼ offered, up from 99 7/8 bid, par 1/8 offered. The term loan B-5 was quoted by a trader at par 3/8 bid, par ¾ offered, down from par ½ bid, 101 offered.

One trader explained that there is no call protection on the Freescale debt so the expectation is that it will grind to par, but since the acquisition does not close for a while the debt will be elevated to slightly above par in the near-term as investors view it as a yield play.

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