NXP Announces Pricing of Senior Unsecured Notes Offering

EINDHOVEN, The Netherlands, May 04, 2021 (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 $1,000 million aggregate principal amount of senior unsecured notes due 2031 (the “2031 Notes”) and $1,000 million aggregate principal amount of senior unsecured notes due 2041 (the “2041 Notes” and, together with the 2031 Notes, the “Notes”) pursuant to Rule 144A and Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The 2031 Notes will bear interest at 2.500% per annum and will mature on May 11, 2031. Interest on the 2031 Notes will be payable semi-annually on May 11 and November 11 of each year, beginning on November 11, 2021. The 2041 Notes will bear interest at 3.250% per annum and will mature on May 11, 2041. Interest on the 2041 Notes will be payable semi-annually on May 11 and November 11 of each year, beginning on November 11, 2021.

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 11, 2021, subject to customary closing conditions.

NXP intends to use the net proceeds of the offering of the 2031 Notes to finance, 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 2031 Notes to finance eligible green projects, the net proceeds of the 2031 Notes, together with the net proceeds of the 2041 Notes, will be temporarily held as cash and other short term securities or used for general corporate purposes, which may include capital expenditures, short-term debt repayment or equity buyback transactions.