Freescale Semiconductor announced that it intends to offer 30,000,000 common shares, par value $0.01 per share, in an underwritten public offering, subject to market and other conditions. In addition, Freescale intends to grant the underwriters a 30-day option to purchase up to 4,500,000 additional common shares of Freescale.
According to a release, Freescale intends to contribute all of the net proceeds from the offering, if completed, to its indirect subsidiary and main U.S. operating entity, Freescale Semiconductor, Inc., which intends to use the contributed net proceeds, together with cash on hand, to redeem all of its outstanding 10.125 percent Senior Subordinated Notes due 2016 and a portion of its outstanding 8.05 percent Senior Unsecured Notes due 2020, in each case in accordance with the indenture governing the applicable series of notes, and to pay the related premium and fees. The foregoing does not constitute a notice of redemption for any outstanding notes.
Goldman, Sachs & Co., Citigroup Global Markets Inc., Credit Suisse Securities (USA), Deutsche Bank Securities Inc., Barclays Capital Inc., J.P. Morgan Securities and Morgan Stanley & Co. will act as joint book-running managers for the offering.
Freescale Semiconductor is a company focused on embedded processing solutions, providing products that are advancing the automotive, consumer, industrial and networking markets.
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