NXP Semiconductors announces $1B bridge financing

Release time:2018-09-21
author:Ameya360
source:electroiq
reading:3759

NXP Semiconductors N.V. (NASDAQ: NXPI) today announced that on September 19, 2018 (the “Closing Date”) its subsidiaries NXP B.V and NXP Funding LLC (the “Borrowers”), the lenders party thereto and Barclays Bank Plc, as administrative agent, entered into a US$1,000,000,000 senior unsecured bridge term credit facility agreement (the “Bridge Term Credit Agreement”).  On the Closing Date, an aggregate principal amount of US$1,000,000,000 of term loans (the “Term Loans”) were borrowed under the Bridge Term Credit Agreement.  The Term Loans mature 364 days following the Closing Date and bear interest, at the option of the Borrowers, at either (a) a LIBOR rate plus an applicable margin of 1.5 percent or (b) a base rate plus an applicable margin of 0.5 percent.

The proceeds of the Loans hereunder shall be used for general corporate purposes of the Borrower as well as to finance parts of the announced equity buy-back program.

All present and future obligations of the Borrowers arising under and pursuant to the terms of the Bridge Term Credit Agreement are guaranteed pursuant to a guaranty agreement dated as of the Closing Date (the “Guaranty Agreement”) and made by NXP Semiconductors Netherlands B.V., Freescale Semiconductor Holdings V, Inc., and NXP USA, Inc., in favor of Barclays Bank Plc, as administrative agent.

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