By Cristal Cody
Tupelo, Miss., Dec. 3 – NXP BV and co-issuer NXP Funding LLC sold $2 billion of senior notes (Baa3/BBB-/BBB-) in three tranches on Monday on the tight side of guidance, a market source said.
The deal included $1 billion of 4.875% notes due March 1, 2024 that priced with a spread of Treasuries plus 205 basis points. Deal guidance was in the Treasuries plus 210 bps area, plus or minus 5 bps, tighter than initial talk in the Treasuries plus 225 bps area.
NXP sold $500 million of 5.35% notes due March 1, 2026 at a 245 bps over Treasuries spread. The issue was guided to price in the Treasuries plus 250 bps area, plus or minus 5 bps, compared to initial talk in the 255 bps spread area.
A final $500 million tranche of 5.55% 10-year notes priced with a spread of 260 bps over Treasuries, on the tight side of guidance of 265 bps over Treasuries area, plus or minus 5 bps. Initial price talk was in the Treasuries plus 275 bps spread area.
Barclays and Credit Suisse Securities (USA) LLC were the bookrunners.
Proceeds are expected to be used to repay a $1 billion senior bridge loan and for general corporate purposes.
The notes will be guaranteed by parent company NXP Semiconductors NV, as well as NXP Semiconductors Netherlands BV and NXP USA Inc.
NXP is an Eindhoven, the Netherlands-based manufacturer and retailer of semiconductor chips.
| Issuer: | NXP BV/NXP Funding LLC
|
| Guarantors: | NXP Semiconductors NV and NXP Semiconductors Netherlands BV and NXP USA Inc.
|
| Amount: | $2 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays and Credit Suisse Securities (USA) LLC
|
| Trade date: | Dec. 3
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | March 1, 2024
|
| Coupon: | 4.875%
|
| Spread: | Treasuries plus 205 bps
|
| Price guidance: | Treasuries plus 210 bps area, plus or minus 5 bps; initial talk at Treasuries plus 225 bps area
|
|
|
| Seven-year notes
|
| Amount: | $500 million
|
| Maturity: | March 1, 2026
|
| Coupon: | 5.35%
|
| Spread: | Treasuries plus 245 bps
|
| Price guidance: | Treasuries plus 250 bps area, plus or minus 5 bps; initial talk at Treasuries plus 255 bps area
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Dec. 1, 2028
|
| Coupon: | 5.55%
|
| Spread: | Treasuries plus 260 bps
|
| Price guidance: | Treasuries plus 265 bps area, plus or minus 5 bps; initial talk at Treasuries plus 275 bps area
|
© 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.
