Citigroup (NYSE:C), Deutsche Bank (NYSE:DB) Hired for Freescale IPO

Citigroup (NYSE:C) and Deutsche Bank (NYSE:DB) have been hired by Freescale Semiconductor Inc. to manage its initial public offering, according to people close to the matter.

Freescale Semiconductor Inc. is owned by Blackstone Group LP and TPG Capital, among others.

There will probably be more banks added to the two to help them with their IPO, according to the sources.

Chief Executive Officer Rich Beyer stated in December that capital raised from an IPO would be used take care of $1.2 billion in debt which will be due in 2014.

Freescale was taken private by Blackstone, TPG, Carlyle Group and Permira Advisers LLP. Since then Beyer has lowered costs and debt by closing plants and cutting jobs. He also negotiated with bondholders to lower the $10 billion det to about $8.2 billion today.

Freescale is the biggest supplier of computer chips to the American auto industry.

In the fourth quarter, sales for Freescale rose to $1.18 billion, a gain of 24 percent, with the net loss of the company shrinking to $102 million.