Freescale solicits consents to allow more flexibility to invest cash

New York, May 23 - Freescale Semiconductor, Inc. said it has begun a consent solicitation for its $400 million of floating-rate senior notes due 2009, $350 million of 6 7/8% senior notes due 2011 and $500 million of 7 1/8% senior notes due 2013.

The company is seeking greater flexibility in its investment of cash, cash equivalents and some other investments, both in the United States and abroad, to give it the potential to earn higher returns. Under the proposed changes, the definition of cash equivalents would be expanded, subject to restrictions on the weighted average maturity of all such investments.

As of April 1, Freescale had cash, cash equivalents and short-term investments of $2.35 billion.

Freescale needs the consent of holders of at least a majority of each series of notes.

If the solicitation is successful, Freescale will pay consenting noteholders $1.25 per $1,000 principal amount.

The consent solicitation expires at 5 p.m. ET on June 7.

J.P. Morgan Securities Inc. is solicitation agent (866 834-4666 or call collect 212 834-3424). Global Bondholder Services Corp. is information agent and tabulation agent (866 612-1500 or 212 430-3774).

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