S&P rates NXP notes BBB-

S&P said it assigned BBB- issue-level ratings to senior unsecured notes totaling $1.75 billion proposed by NXP BV, a wholly owned subsidiary of NXP Semiconductors NV.

Co-borrowers include NXP Funding LLC and NXP USA Inc.

The notes will guaranteed by NXP Semiconductors, S&P noted.

The proceeds will be used for the repayment of $1.15 billion convertible notes due in December 2019 and $600 million notes due in June 2020.

NXP is a leading player in the design and manufacturing of high-performance mixed signal semiconductors, S&P said.

The outlook is positive, reflecting the possibility of a one-notch upgrade in the next 12 to 18 months if it builds a sufficient track record of managing shareholder distributions and debt levels so that leverage remains lower than its 2x target on a sustainable basis, the agency said.

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