8-K

NXP Semiconductors N.V. 8-K Report (Nov 21, 2012)

Filed November 21, 2012For Securities:NXPI

Summary

NXP Semiconductors N.V. (NXPI) filed a Form 6-K on November 21, 2012, to announce the extension of its tender offer for its 9 3/4% Senior Secured Notes due 2018. The primary objective of this tender offer is to reduce NXP's interest expenses and optimize its debt maturity profile. The company plans to fund these repurchases using proceeds from new debt issuances or term loans. The tender offer, initially set to expire on November 9, 2012, has been extended to December 10, 2012. As of November 20, 2012, NXP had received tenders exceeding its $500 million maximum purchase amount, with approximately $678 million principal amount of the Notes tendered, representing 73.50% of the outstanding Notes. This oversubscription indicates strong investor participation and a favorable market reception to NXP's debt management strategy. The settlement date for accepted notes is expected around December 12, 2012, subject to the satisfaction of a financing condition.

Key Highlights

  • 1NXP Semiconductors N.V. is extending its tender offer for its 9 3/4% Senior Secured Notes due 2018.
  • 2The purpose of the tender offer is to reduce interest costs and extend debt maturity.
  • 3The offer expiration date has been extended to December 10, 2012.
  • 4As of November 20, 2012, over $678 million principal amount of notes were tendered, exceeding the $500 million maximum purchase limit.
  • 5The tendered amount represents 73.50% of the outstanding Notes, indicating significant investor interest.
  • 6Purchases will be prorated due to oversubscription.
  • 7The tender offer is subject to a financing condition.

Frequently Asked Questions

NXP Semiconductors N.V. is conducting a tender offer to repurchase up to $500 million in principal amount of its outstanding 9 3/4% Senior Secured Notes due 2018. The company has extended the expiration date of this offer.

The tender offer has been extended to December 10, 2012. This extension is to allow more time for investors to participate in the offer, which aims to reduce NXP's interest expenses and optimize its debt maturity profile.

As of November 20, 2012, NXP had received tenders for approximately $678 million of the Notes, which is more than the $500 million maximum amount NXP intends to purchase. This means the purchase will be prorated.

Holders who validly tender their Notes after the early tender deadline and at or prior to the extended expiration time will receive $1,142.50 per $1,000 principal amount of Notes accepted for purchase, plus accrued and unpaid interest.