Summary
NXP Semiconductors N.V. (NXPI) has filed a Form 6-K, announcing the launch of a senior unsecured notes offering. The company intends to offer USD 300 million in aggregate principal amount of notes due 2023. This offering is being made pursuant to Rule 144A and Regulation S under the U.S. Securities Act of 1933. The primary purpose of this offering is to utilize the net proceeds to repay outstanding amounts under its Term Loan B, which was entered into on February 16, 2012. By doing so, NXP aims to reduce the proportion of variable rate debt within its capital structure. Investors should note that these senior unsecured notes will be structurally subordinated to liabilities of subsidiaries not guaranteeing the notes, and effectively subordinated to secured debt.
Key Highlights
- 1NXP Semiconductors N.V. announced the launch of a USD 300 million senior unsecured notes offering due 2023.
- 2The offering is being conducted under Rule 144A and Regulation S of the U.S. Securities Act of 1933.
- 3Proceeds will be used to repay outstanding amounts under the Term Loan B entered into on February 16, 2012.
- 4The company intends to reduce its exposure to variable rate debt.
- 5The senior unsecured notes will be structurally subordinated to certain subsidiary liabilities.
- 6The notes will be effectively subordinated to all secured debt of the issuers and guarantors.