Freescale Announces Completion of New Financing under Senior Secured Credit Facilities and Redemption of $500M Principal Amount of Senior Subordinated Notes

Freescale Semiconductor Holdings I, Ltd., FSL announced today that Freescale Semiconductor, Inc., its wholly owned indirect subsidiary, completed the previously-announced financing under its existing senior secured credit facilities. Freescale amended its Credit Facility to, among other things, enter into a new senior secured term loan facility in an aggregate principal amount of $500,000,000. Borrowings under the new term loan facility bear interest, at a rate equal to (i) for eurocurrency rate loans, LIBOR plus 4.75% (with LIBOR of not less than 1.25%) and (ii) for base rate loans, the applicable base rate plus 3.75%. The new term loans will mature on February 28, 2019, which maturity will be accelerated to December 15, 2017 if, as of December 1, 2017, Freescale fails to maintain a specified leverage ratio and the aggregate principal amount of its secured notes due 2018 exceeds $500,000,000. The new term loans are guaranteed by the same guarantors of the existing term loans under the Credit Facility and are secured by the same collateral securing the existing term loans under the Credit Facility. The new term loans will otherwise have substantially the same terms and conditions as the existing term loans under the Credit Facility. The amendment to the Credit Facility closed on February 28, 2012. On February 28, 2012, Freescale delivered to the holders of its 10.125% Senior Subordinated Notes Due 2016 (the “Notes”) notice that it will redeem $500,000,000 aggregate principal amount of the Notes. The redemption date for the Notes is March 29, 2012 (the “Redemption Date”). The redemption of the Notes will be funded with the proceeds from the new term loans, together with cash on hand. The redemption price for the Notes redeemed is 105.063% of the outstanding aggregate principal amount of the Notes, plus accrued and unpaid interest to, but excluding, the Redemption Date.