Freescale seeks $1 bln loan from existing lenders

NEW YORK Feb 10 (Reuters) - Freescale Semiconductor Holdings [FSLSM.UL] said on Tuesday it is seeking up to $1 billion in new loans from existing lenders, as the privately held chip maker grapples with declining sales and a high debt load.

Freescale last month reported a much wider loss than a year ago, as sales fell by more than a third and it took huge goodwill and other charges.

The company is struggling under its debt load after it was spun off from Motorola in 2004 and taken private in a $17.6 billion leveraged buyout in late 2006.

Freescale is asking its bank lenders for an additional $1 billion under its incremental loan facilities, which are also known as "accordion features." These allow companies to take out additional loans under their credit agreements.

The new loans would mature on Dec. 15, 2014, and be guaranteed by the same guarantors of its senior secured credit facility.

If the banks do not participate in the loan, Freescale will allow its bondholders to swap their bonds for the new loans, which will rank equally to those of its secured, bank lenders.

The company bank lenders have until Feb. 19 to agree to make the new loan, or its bondholders will have until March 10 to participate. (Reporting by Karen Brettell; Editing by Leslie Adler)