NXP readies launch of $2.7 billion term loan B for Friday

By Sara Rosenberg

New York, Oct. 29 – NXP BV is scheduled to hold a lender call at 10:45 a.m. ET on Friday to launch a $2.7 billion five-year term loan B, according to a market source.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc., and Bank of America Merrill Lynch are the lead banks on the deal.

Price talk on the term loan B is Libor plus 325 basis points with a 0.75% Libor floor and an original issue discount of 99, the source said.

The term loan has 101 soft call protection for six months.

Expected ratings are Ba2 from Moody’s Investors Service and BB+ from Standard & Poor’s, the source continued.

Commitments are due on Nov. 5.

Proceeds will be used to help fund the acquisition of Freescale Semiconductor Ltd. for $6.25 in cash and 0.3521 of an NXP ordinary share for each Freescale common share held at the close of the transaction.

The purchase price implies a total equity value for Freescale of about $11.8 billion and a total enterprise value of around $16.7 billion including Freescale’s net debt.

Closing is expected this year, subject to regulatory approvals in various jurisdictions and customary conditions, as well as the approval of NXP and Freescale shareholders.

NXP is an Eindhoven, Netherlands-based maker of semiconductors. Freescale is an Austin, Texas-based semiconductor company.

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