NXP Semiconductors $11.8 billion acquisition of Freescale

Overview:

• NXP Semiconductors has acquired Freescale for $11.8 billion.
• The deal is a cash and stock deal. Freescale shareholders will get $6.25 in cash and 0.3521 of an NXP share for each Freescale common share.
• Both companies produce computer chips and the deal creates the world's eighth largest chipmaker.
• The deal was financed in part via financing from Credit Suisse and through the issue of $1 billion in senior notes under Rule144A/Reg S.
• The equity financing was made up of an up to $3.25 billion senior secured tranche B-1 term facility, an up to $3.25 billion senior secured tranche B-2 term facility and an up to $500 million super-priority senior secured revolving credit facility.
• Freescale is part owned by private equity houses Blackstone, Carlyle, TPG and Permira.
• Credit Suisse acted as financial adviser to NXP.
• Morgan Stanley acted as financial adviser to Freescale.

Sam Duke - Editor