02.10.17
NXP Semiconductors N.V., through its subsidiaries NXP B.V. and NXP Funding LLC, delivered notice on Feb. 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% 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.
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 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.
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.
