NXP buys back $204.44 million, €87.34 million of notes, sells $131.28 million in private transaction

By Angela McDaniels

Tacoma, Wash., July 20 - NXP BV and NXP Funding LLC agreed to purchase $54 million of 7 7/8% senior secured notes due 2014 for $25.65 million in cash in a private transaction, according to a company news release.

NXP will also purchase $150.44 million of 9½% senior notes due 2015 and €87,339,000 of 8 5/8% senior notes due 2015 for $102.56 million in cash and sell $131.28 million of 10% super-priority notes due 2013 for $102.56 million in cash.

The agreement was reached with an investment manager and its affiliates on Friday.

The super-priority notes will be newly issued under the existing super-priority notes indenture. They will have substantially the same terms and conditions as the 10% super-priority notes due 2013 issued under the indenture on April 2, but they will constitute a new series of notes and will not be fungible with the existing super-priority notes.

An application will be made for the new super-priority notes to be listed on the Alternative Securities Market of the Irish Stock Exchange.

The private transaction is scheduled to close on Thursday.

The company said the purpose of the transaction is to reduce its overall debt and related interest expense. NXP's overall debt will be reduced by about $225 million, and the related annual cash interest expense will decrease by approximately $16 million.

The company may seek to retire or purchase its outstanding debt from time to time through cash purchases and/or exchanges in open-market purchases, privately negotiated transactions or otherwise.

NXP makes semiconductors and is based in Eindhoven, the Netherlands.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.