The planned $17.6bn (€13.9bn) take-private of US semiconductor company Freescale is likely to use a controversial "covenant lite" loan package offering almost no protection for lenders.

Blackstone, Permira, Texas Pacific Group and Carlyle have yet to complete the acquisition but sources close to the deal said the debt, being arranged by Credit Suisse and Citigroup, might use conditions and structural changes in the loan market to push through advantageous terms for the buyout firms.