Summary
NXP Semiconductors N.V. (NXPI) has announced the repricing of its existing senior secured term loan facility through the issuance of new "Tranche E Loans" totaling up to $400,000,000. These new loans, due in 2017, will be used in conjunction with existing cash reserves and revolving credit facility draws to prepay the company's outstanding Tranche A-1 Loans, also due in 2017. This financial maneuver, facilitated by Barclays Bank PLC, aims to optimize the company's debt structure and potentially reduce borrowing costs. The Tranche E Loans will carry an interest rate of LIBOR plus 2.00%, with a LIBOR floor of 0.75%.
Key Highlights
- 1NXP Semiconductors N.V. is issuing new "Tranche E Loans" under its Senior Secured Term Loan Facility, raising up to $400,000,000.
- 2The proceeds from the Tranche E Loans, along with cash-on-hand and revolving credit facility drawings, will be used to prepay existing Tranche A-1 Loans.
- 3Both the new Tranche E Loans and the existing Tranche A-1 Loans mature in 2017.
- 4The new Tranche E Loans will bear interest at a rate of LIBOR plus 2.00% per annum.
- 5A LIBOR floor of 0.75% per annum is stipulated for the Tranche E Loans.
- 6Barclays Bank PLC acted as the arranger for this debt repricing transaction.
- 7This action follows a previous repricing announcement made by NXP on February 6, 2014.
Frequently Asked Questions
The primary purpose of the "Tranche E Loans" is to raise up to $400,000,000, which will be used alongside existing cash and revolving credit to prepay NXP's outstanding Tranche A-1 Loans.
The "Tranche E Loans" will accrue interest at a rate of LIBOR plus 2.00% per annum, with a floor of 0.75% per annum for LIBOR.
The filing indicates that both the existing Tranche A-1 Loans and the new Tranche E Loans mature in 2017. Therefore, this specific transaction does not alter the maturity year of this portion of the debt, but rather refinances it.
Barclays Bank PLC served as the arranger for this debt repricing transaction.