Freescale Semiconductor Announces Increase of New Term Loan Facility from $300 million to $800 million

  Freescale Semiconductor Announces Increase of New Term Loan Facility from
  $300 million to $800 million

Business Wire

AUSTIN, Texas -- September 9, 2013

Freescale Semiconductor, Inc. (“Freescale”), a wholly owned subsidiary of
Freescale Semiconductor, Ltd. (NYSE:FSL), announced today that Freescale has
been advised by the arrangers under its proposed new senior secured term loan
facility that they have received sufficient orders to upsize the proposed new
term loan facility to $800 million from the original $300 million proposed at
the outset of the offering. The proceeds from the proposed new term loan
facility are intended to be used to redeem, repurchase or otherwise acquire
all of Freescale’s outstanding 10⅛% senior secured notes due 2018 and a
portion of its 9¼% senior secured notes due 2018, and to pay related
redemption premiums and fees. Freescale will pay for a portion of its expenses
with cash on hand. The foregoing does not constitute a notice of redemption
for any outstanding notes. The purposes of the transaction and the application
of the proceeds are to extend a portion of Freescale’s debt maturities and
reduce interest expense.

The proposed new term loan facility is expected to mature in January 2021. The
maturity may be accelerated to March 2018 under specified circumstances. The
new term loan is expected to bear interest at a rate equal to LIBOR plus 3.75%
(with LIBOR of not less than 1.25%). The closing of the proposed new term loan
facility, which is expected to occur on September 11, 2013, is subject to
customary conditions, and there can be no assurance that Freescale will be
successful in obtaining the proposed new term loan facility on reasonably
acceptable terms, or at all.

The proposed new term loan facility will be effected as an amendment to the
existing senior secured credit facilities. The secured credit facilities
contain a provision that requires the weighted average yield of existing term
loans under the facilities to be no less than 0.5% below the weighted average
yield of certain new term loans issued under the facilities. Consequently, as
of the closing of the new term loan facility, the existing $349 million term
loan facility due 2016 is expected to bear interest at a rate of 4.8%, an
increase of 0.5%. The company expects cash interest savings related to this
transaction to be approximately $26 million on an annualized basis.

This press release shall not constitute an offer to sell or the solicitation
of an offer to buy any securities.

Cautionary Note Regarding Forward-Looking Statements

This press release includes forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 relating to the proposed
new term loan facility, the use of proceeds therefrom and the estimated cash
interest savings. Although we believe the assumptions upon which these
forward-looking statements are based are reasonable, any of these assumptions
could prove to be inaccurate and the forward-looking statements based on these
assumptions could be incorrect. The closing of the proposed new term loan
facility is subject to customary conditions and involves risks and
uncertainties, many of which are outside our control, and any one of which, or
a combination of which, could materially affect our ability to enter into the
term loan facility described above. Some of these risks and uncertainties
include general economic, political and business conditions, uncertainty in
the credit markets, unwillingness of lenders to fund commitments associated
with the new term loan facility as well as other matters described under "Risk
Factors" in our Annual Report on Form 10-K/A and other filings with the SEC.
We undertake no obligation to update any information contained in this press

About Freescale Semiconductor

Freescale Semiconductor (NYSE:FSL) is a global leader in embedded processing
solutions, providing industry leading products that are advancing the
automotive, consumer, industrial and networking markets. From microprocessors
and microcontrollers to sensors, analog integrated circuits and connectivity –
our technologies are the foundation for the innovations that make our world
greener, safer, healthier and more connected. Some of our key applications and
end-markets include automotive safety, hybrid and all-electric vehicles, next
generation wireless infrastructure, smart energy management, portable medical
devices, consumer appliances and smart mobile devices. The company is based in
Austin, Texas, and has design, research and development, manufacturing and
sales operations around the

Freescale and the Freescale logo are trademarks of Freescale Semiconductor,
Inc., Reg. U.S. Pat. & Tm Off. All other product or service names are the
property of their respective owners. © 2013 Freescale Semiconductor, Inc.


Freescale Semiconductor
Mitch Haws, 512-895-2454
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