Freescale Semiconductor

exited

Technology / Semiconductors — Blackstone / Carlyle / Permira / TPG

Deal Terms

Entry Year2006

Entry EV$17.6B

Entry Multiple11x

Leverage6x

Debt Amount$10.6B

Outcome

Exit Year2015

Risk Metrics

LTV (est.)60%

Debt / EV0.60x

Notes

$17.6B LBO — PE consortium invested $7B equity. Semiconductor cyclicality + massive debt = near-death experience during 2008 crisis. Two new CEOs, debt renegotiations, IPO'd eventually. NXP Semiconductors acquired for $11.8B (2015). PE squeaked out a small profit after 9 brutal years.

Sponsor

Blackstone$1270B AUM

Hot Potato History

1948→Motorola (parent)

2004→Public (spin-off IPO)

2006→Blackstone + Carlyle + Permira + TPG($17.6B)

2015→NXP Semiconductors (acquisition)($11.8B)

Absorbed into NXP at $11.8B — 33% below the $17.6B LBO price. Four PE firms lost billions.