Summary
NXP Semiconductors N.V. (NXPI) has announced the pricing of a USD 500 million offering of senior unsecured notes due 2021. These notes will bear an annual interest rate of 5.75% and are set to mature on February 15, 2021. The company plans to utilize the net proceeds from this offering, combined with existing cash, to pay down outstanding amounts under its Term Loan A2. This strategic move aims to reduce NXP's variable rate debt exposure within its capital structure. The offering was conducted under Rule 144A and Regulation S, indicating it was primarily targeted towards institutional investors and qualified buyers. Investors should note that the Unsecured Notes are structurally subordinated to liabilities of subsidiaries that have not guaranteed them, and effectively subordinated to any secured debt of NXP and its guarantors. The closing of this transaction is anticipated around February 14, 2013.
Key Highlights
- 1NXP Semiconductors announced the pricing of USD 500 million in senior unsecured notes due 2021.
- 2The notes will carry a fixed interest rate of 5.75% per annum.
- 3The offering is expected to close on or around February 14, 2013.
- 4Proceeds will be used to repay outstanding amounts under the Term Loan A2.
- 5The debt refinancing aims to decrease NXP's variable rate debt.
- 6The notes are structurally subordinated to certain subsidiary liabilities and effectively subordinated to secured debt.
- 7The offering was conducted pursuant to Rule 144A and Regulation S.