NXP concludes tender offer, purchases 73.5% of 9¾% notes due 2018

By Toni Weeks

San Diego, Dec. 11 - NXP Semiconductors NV said it received tenders for $678.02 million of its $922.47 million of 9¾% senior secured notes due 2018 issued by NXP BV and NXP Funding LLC by 11:59 p.m. ET on Dec. 10, the expiration date for the offer. The amount was unchanged as of 5 p.m. ET on Nov. 9, the early tender deadline, as well as on 5 p.m. ET on Nov. 20.

Because the principal amount of notes tendered exceeded the $500 million maximum tender amount, the company will accept about 73.5% of the notes for purchase on a prorated basis, according to a press release.

As previously reported, NXP will pay $1,172.50 per $1,000 principal amount of the notes to holders who tendered by the early deadline. Those who tendered after that time will receive $1,142.50 per $1,000 of notes.

NXP will also pay accrued interest.

The offer began Oct 24. Originally it was set to end on Nov. 26, but on Nov. 21, the company announced it would extend the offer to Dec. 10. Settlement will occur Dec. 12.

Funding for the tender offer will come from NXP BV and NXP Funding LLC's new joint $500 million senior secured term loan facility. Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Goldman Sachs Bank USA are the joint arrangers for the facility, which closed on Dec. 10.

As previously announced, the tender offer, together with the new term loan, will lower the company's interest cost and extends its debt maturities.

Bank of America Merrill Lynch (646 855-3401 or 888 292-0070), Deutsche Bank Securities Inc. (212 250-7527 or 855 287-1922) and Goldman Sachs & Co. (212 902-5183 or 800 828-3182) were dealer managers. D.F. King & Co., Inc. was information agent (212 269-5550 or 800 207-3158).

NXP is an Eindhoven, Netherlands-based maker of semiconductors.

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