LONDON – Freescale Semiconductor, the U.S. chip company that spun off from Motorola in 2004 and taken private by a private equity consortium in 2006, has filed for an initial public offering of common shares.
Freescale Semiconductor Holdings I Ltd. of Bermuda plans to sell 43,500,000 common shares at a price of between $22 and $24 per share, which would raise between $957 million and $1.04 billion. This would be about one fifth or sixth of the shares outstanding after the issuance of the shares.
Freescale originally filed with the U.S. Securities and Exchange Commission (SEC) for an IPO on Feb. 11. At the time, the company said it hoped to raise about $1.15 billion but did not include information about the price of the shares.
Freescale has granted the underwriters a 30-day option to purchase up to an additional 6,525,000 common shares to cover over-allotments. The common shares have been approved for listing on the New York Stock Exchange, subject to official notice of issuance, under the symbol FSL.
In 2010 Freescale made a net loss of $1.05 billion on net sales of $4.46 billion, according to a filing with the SEC. Freescale posted a net loss, including charges, of $148 million on net sales of $1.19 billion, in the first quarter of 2011.
Freescale said it would use the proceeds of the IPO together with cash on hand to repay an aggregate of approximately $1.1 billion in outstanding indebtedness. This also includes payments of of between $2.9 million and $$33.6 million to each to the private equity companies that took Freescale private; includinng Blackstone Management Partners, TC Group, TPG and Permira Advisors.