Published on 5/12/2022 in the Prospect News Investment Grade Daily.
New Issue: NXP sells $1.5 billion of senior notes in parts due 2027, 2033
By Wendy Van Sickle
Columbus, Ohio, May 12 – NXP Semiconductors NV, through its subsidiaries NXP BV, NXP Funding LLC and NXP USA, Inc., sold a $1.5 billion two-part offering of notes (Baa3/BBB/BBB) on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The issuer sold $500 million of 4.4% senior notes due June 1, 2027 at 99.846 to yield 4.434%, or a spread of 165 basis points over Treasuries.
The company also sold a $1 billion tranche of 5% notes due Jan. 15, 2033 at 99.701 to yield 5.035%, or a spread of 220 bps over Treasuries.
Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Rabo Securities USA, Inc. and SMBC Nikko Securities America, Inc. are the bookrunners.
Proceeds will be used to redeem $900 million of the company’s 4.625% notes due 2023. Any remaining proceeds will be used for general corporate purposes, including capital expenditures or short-term debt repayment.
The company plans to allocate an amount equal to the proceeds for investment in eligible green projects within five years of the date of issuance of the notes.
NXP is an Eindhoven, Netherlands, maker of chips for secure connectivity.
| Issuers: | NXP BV, NXP Funding LLC and NXP USA, Inc.
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| Guarantor: | NXP Semiconductors NV
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| Amount: | $1.5 billion
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| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Rabo Securities USA, Inc. and SMBC Nikko Securities America, Inc.
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| Trustee: | Deutsche Bank Trust Co. Americas
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| Counsel to issuer: | Skadden, Arps, Slate, Meagher & Flom LLP and DeBrauw Blackstone Westbroek NV
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| Counsel to underwriters: | Davis Polk & Wardwell LLP
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| Trade date: | May 12
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| Settlement date: | May 16
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| Ratings: | Moody’s: Baa3
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| S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
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| 2027 notes
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| Amount: | $500 million
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| Issue: | Senior notes
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| Maturity: | June 1, 2027
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| Coupon: | 4.4%
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| Price: | 99.846
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| Yield: | 4.434%
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| Spread: | Treasuries plus 165 bps
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| Call: | Make whole call at Treasuries plus 25 bps until May 1, 2027, then a par call
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| Cusip: | 62954HBE7
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| 2033 notes
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| Amount: | $1 billion
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| Issue: | Senior notes
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| Maturity: | Jan. 15, 2033
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| Coupon: | 5%
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| Price: | 99.701
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| Yield: | 5.035%
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| Spread: | Treasuries plus 220 bps
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| Call: | Make whole call at Treasuries plus 35 bps until Oct. 15, 2032, then a par call
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| Cusip: | 62954HBB3
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