comment on this article

Freescale looks to raise $1billion to pay down debt


When private equity investors acquired NXP and Freescale a few years ago, the cost of the deals was placed on the acquired company's balance sheet. In that way, NXP and Freescale paid for the privilege of being bought.
This approach worked in good times; unfortunately, the timing of the deals was bad.

When the global economy collapsed shortly afterwards, the debts came close to finishing both companies.

Now Freescale is launching an IPO, with the aim of raising $1billion to pay down debt. That's good for Freescale, certainly. But it's also good for the semiconductor industry as it shows that investors are back in action. Because, for a couple of years, investing in semiconductor companies has been as attractive as assuming toxic banking debts.

Author
Graham Pitcher

Comment on this article


This material is protected by Findlay Media copyright See Terms and Conditions. One-off usage is permitted but bulk copying is not. For multiple copies contact the sales team.

Enjoy this story? People who read this article also read...

What you think about this article:

Karl, I don't know what the answer is, but I think it will be a bit easier once we're completely out of the current economic downturn.

While this is good news for Freescale, is it, as Graham Pitcher says, "good for the semiconductor industry as it shows that investors are back in action." ?

On the back of the Freescale IPO, I can't really see a sudden influx of new investors fighting to invest in other semiconductor companies.


Posted by: NanoNorman, 15/02/2011
Re. the private equity mess: do you think it's possible to re-shape our society/economy so that it's not organised around finding new ways to make a profit from someone else's work?

If so, what might work?
If not, what would make it impossible?

I'm interested in people's thoughts about this.


Posted by: Karl Lam, 15/02/2011

Add your comments

Name
 
Email
 
Comments
 

Your comments/feedback may be edited prior to publishing. Not all entries will be published.
Please view our Terms and Conditions before leaving a comment.

Related Articles

EU semi sales up 7.3%

The latest figures from DMASS, the Distributors' and Manufacturers' Association ...

BEEAs 2013 round up

The Grand Prix at this year's British Engineering Excellence Awards goes to the ...

Supporting start ups

For 15 years, the Sophia Antipolis Microelectronics Forum (SAME) has encouraged ...

Always innovating

Check out this brief video promo for an all new website that explores TI ...

Rory Read, CEO, AMD

When Rory Read joined AMD in 2011 it was a company in trouble, but he has led ...