Freescale Makes It Official and Files for $1.15 Bln IPO

The long-awaited Freescale Semiconductor IPO is now a reality.

The chipmaker filed today for an IPO that could raise as much as $1.15 billion.

Austin, Texas-based Freescale didn’t disclose how many shares it would sell or their price range. The chip maker is expected to trade on the New York Stock Exchange but didn’t disclose a ticker. Details will come in future filings.

Book runners on the deal include Citi and Deutsche Bank. Other underwriters on the deal include Barclays Capital, Credit Suisse and JP Morgan, according to a Feb. 11 regulatory filing.

Freescale, which makes chips used in the automotive, networking and consumer markets, is currently owned by Blackstone, Carlyle, Permira and TPG. The PE firms own a combined 99.98% of Freescale. It was not clear how much the buyout shops intend to sell in the offering.

Freescale plans to use proceeds from the IPO to pay off its huge debt load and for general corporate purposes. Much of the chip maker’s debt came from its sale to the Blackstone-led group. Freescale had only $832 million in long-term debt in September 2006 (plus an additional $353 million in other liabilities), according to an earnings statement from that time. It now has about $7.6 billion in long-term debt, as of Dec. 31, plus another $602 million in other liabilities, the filing said.