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EINDHOVEN, The Netherlands, Feb. 10, 2017 -- NXP Semiconductors N.V. (NASDAQ:NXPI) through its subsidiaries NXP B.V. and NXP Funding LLC, delivered notice on February 7, 2017 that it will pre-pay (i) all of its outstanding floating-rate term loan due March 2017 (“Term Loan E”) in an aggregate principal amount of $388 million; (ii) all its outstanding floating-rate term loan due January 2020 (“Term Loan D”) in an aggregate principal amount of $387 million; and (iii) all its outstanding floating-rate term loan due December 2020 (“Term Loan F”) in an aggregate principal amount of $1,436 million, in each case, together with accrued interest and applicable fees. Additionally, the company notified holders of its 5.75 percent Senior Notes due 2021 that it will redeem on March 9, 2017, the $500 million of outstanding principle.
The gross debt held on NXP’s balance sheet will be reduced by an aggregate of $2.7 billion to $6.5 billion from the $9.2 billion as reported at the end of the fourth quarter of 2016. The company will utilize net proceeds from the completed divestment of its Standard Products business in addition to cash held on its balance sheet to fund the planned debt reduction. Subsequent to the planned debt reduction, the remaining debt held on the company’s balance sheet will be fixed rate, unsecured notes.
Due to the planned debt reduction, the company’s financial leverage, defined as net debt divided by the trailing 12 months adjusted EBITDA is expected be reduced to 1.5x on a pro forma basis, from the 2.45x as reported at the end of the fourth quarter of 2016. The pro forma leverage after the debt reduction efforts is net of the EBITDA contribution from the Standard Products business in the previous calculation. Additionally, the company estimates its financial interest expense, after the debt reduction will be approximately $245 million on an annualized basis.
This announcement is for informational purposes only.
About NXP Semiconductors
NXP Semiconductors N.V. (NASDAQ:NXPI) enables secure connections and infrastructure for a smarter world, advancing solutions that make lives easier, better and safer. As the world leader in secure connectivity solutions for embedded applications, NXP is driving innovation in the secure connected vehicle, end-to-end security & privacy and smart connected solutions markets. Built on more than 60 years of combined experience and expertise, the company has 31,000 employees in more than 33 countries and posted revenue of $9.5 billion in 2016. Find out more at www.nxp.com.
For further information, please contact: Investors: Jeff Palmer [email protected] +1 408 518 5411 Media: Jacey Zuniga [email protected] +1 512 895 7398
