NXP Semiconductors N.V. NXPI
(together with its subsidiaries, "NXP") announced today the upsizing
of the previously announced offering by its subsidiaries NXP B.V. and
NXP Funding LLC of USD 300 million to an offering of USD 500 million
aggregate principal amount of senior notes due 2023 ("Unsecured
Notes") pursuant to Rule 144A and Regulation S under the U.S.
Securities Act of 1933, as amended (the "Securities Act") and also
announced the pricing of the offering. The Unsecured Notes will be
structurally subordinated to the liabilities, including trade
payables, of NXP's subsidiaries that have not guaranteed the
Unsecured Notes. In addition, the Unsecured Notes will be effectively
subordinated to all secured debt of the issuers and the guarantors,
to the extent of the value of the assets securing such debt. The sale
of the Unsecured Notes is expected to close on or around March 12,
2013.
The Unsecured Notes will bear interest at 5.75% per annum and will
mature on March 15, 2023. Interest on the Unsecured Notes will be
payable semi-annually on March 15 and September 15 of each year,
beginning on September 15, 2013.
NXP intends to use the net proceeds of the offering to repay amounts
outstanding under its Term Loan B that it entered into on February
16, 2012, and thereby decrease the amount of variable rate debt in
its capital structure.
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