Freescale Semiconductor, taken private by The Blackstone Group, The Carlyle Group, Permira Funds and TPG for $17.6 billion in 2006, has elected its option to pay-in-kind on its interest payment due 15 June 2009 in order to preserve liquidity.
As part of the buyout transaction, Freescale was issued $1.5 billion in “PIK-toggle” notes, giving the company the right to pay its debt with more debt, as opposed to cash.
