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| Monday, September 11, 2006 |
Corporate credit ratings agency Standard & Poor's said Monday it placed Freescale Semiconductor Inc. on "CreditWatch with negative implications," based on reports of a possible leveraged buyout.
Earlier on Monday, The New York Times reported Freescale was in talks for a possible sale to a consortium of investment firms including Texas Pacific Group and Permira, in a deal valued at $16 billion. The company later confirmed it is in talks for a "possible business transaction," but did not offer further details.
"Standard & Poor's placed the ratings on CreditWatch following press reports that the company was the target of a possible leveraged buyout by a group of private equity firms," said Standard & Poor's credit analyst Bruce Hyman, in a written statement.
Freescale's corporate credit rating with S&P is currently 'BBB-.'
Another credit ratings agency, Fitch, took the same route Monday, placing all of Freescale Semiconductor Inc.'s ratings on "Rating Watch Negative."
Fitch said the Rating Watch Negative affects $850 million in debt. Freescale's current issuer default rating, as well as its senior unsecured notes rating and its senior unsecured bank credit facility are all rated "BBB-" with Fitch.
Shares of Freescale, which have traded between $20.87 and $33.04 over the last year, were up $6.11, or almost 20 percent, at $36.86 on the New York Stock Exchange. Earlier in the session, shares set a 52-week high of $37.18 |
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