NXP Announces Pricing of Senior Unsecured Notes Offering

EINDHOVEN, The Netherlands, April 29, 2020 (GLOBE NEWSWIRE) -- NXP Semiconductors N.V. (NASDAQ:NXPI) (together with its subsidiaries, “NXP”) announced today the pricing of the previously announced offering by its subsidiaries NXP B.V., NXP Funding LLC and NXP USA, Inc. (together, the “Issuers”) of $500 million aggregate principal amount of senior unsecured notes due 2025 (the “2025 Notes”), $500 million aggregate principal amount of senior unsecured notes due 2027 (the “2027 Notes”) and $1,000 million aggregate principal amount of senior unsecured notes due 2030 (the “2030 Notes” and, together with the 2025 Notes and the 2027 Notes, the “Notes”) pursuant to Rule 144A and Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The 2025 Notes will bear interest at 2.700% per annum and will mature on May 1, 2025. Interest on the 2025 Notes will be payable semi-annually on May 1 and November 1 of each year, beginning on November 1, 2020. The 2027 Notes will bear interest at 3.150% per annum and will mature on May 1, 2027. Interest on the 2027 Notes will be payable semi-annually on May 1 and November 1 of each year, beginning on November 1, 2020. The 2030 Notes will bear interest at 3.400% per annum and will mature on May 1, 2030. Interest on the 2030 Notes will be payable semi-annually on May 1 and November 1 of each year, beginning on November 1, 2020.

The Notes will be fully and unconditionally guaranteed on a senior basis by NXP Semiconductors N.V. and will be structurally subordinated to the liabilities, including trade payables, of NXP’s other subsidiaries. In addition, the Notes will be effectively junior to all future secured debt of the Issuers and NXP Semiconductors N.V., to the extent of the value of the assets securing such debt. The issuance of the Notes is expected to close on or around May 1, 2020, subject to customary closing conditions.

NXP intends to use the net proceeds of the offering of the 2030 Notes to finance or refinance, in whole or in part, one or more eligible green projects, which are defined as investments in (A) research and development for NXP’s (i) “green chip” resonant solutions, (ii) battery control and energy management for electric and hybrid cars, (iii) Advanced Driver Assistance Systems, (iv) mobile device “beam steering”, (v) edge processing portfolio and (vi) smart building technologies, and (B) energy efficiency measures at NXP’s manufacturing and non-manufacturing facilities. Pending the allocation of an amount equal to the net proceeds of the 2030 Notes to finance or refinance eligible green projects, the net proceeds of the 2030 Notes, together with the net proceeds of the 2025 Notes and the 2027 Notes, will be temporarily held as cash and other short term securities or temporarily used for the repayment of indebtedness, which may include the refinancing of the $1,350 million aggregate principal amount of outstanding 4.125% Senior Notes due 2021, and other corporate expenditures.