Summary
This 8-K filing from NXP Semiconductors N.V. announces the early tender results for its offer to purchase up to $500 million of its outstanding 9 3/4% Senior Secured Notes due 2018. The company is undertaking this tender offer to reduce its interest costs and optimize its debt maturity profile, intending to use funds from new debt or term loan markets to finance the repurchases. The early results indicate significant investor participation, with over $678 million principal amount of the notes tendered, representing approximately 73.50% of the outstanding notes. As this amount exceeds the $500 million maximum tender threshold, NXP expects to prorate the accepted purchases. The tender offer officially expires on November 26, 2012, and notes validly tendered after the early tender deadline will be subject to proration and will receive $1,142.50 per $1,000 principal amount plus accrued interest.
Key Highlights
- 1NXP announced early tender results for its offer to repurchase up to $500 million of its 9 3/4% Senior Secured Notes due 2018.
- 2The tender offer aims to reduce interest expenses and extend NXP's debt maturity profile.
- 3Over $678 million principal amount of the notes were tendered by the early deadline, exceeding the $500 million maximum purchase amount.
- 4Accepted purchases will be subject to proration due to the oversubscription.
- 5The early tender deadline, which was also the withdrawal deadline, has passed; tendered notes cannot be withdrawn.
- 6Notes tendered and accepted will be purchased at $1,142.50 per $1,000 principal amount, plus accrued interest.
- 7The tender offer is subject to a Financing Condition and other terms outlined in the Offer to Purchase.