KKR-backed NXP launches debt swap; reduces debt by $225m

The transaction sees NXP buy back more than $350m worth of senior secured notes payable in 2015 for $128m, and issue $131m worth of super priority notes due 2013 for $102m. The new notes will be issued under the same terms and conditions as the US dollar-denominated 10% super priority notes due 2013 issued in the $600 debt swap earlier this year, which saw NXP reduce its debt by around $465m.

NXP was acquired by a consortium led by KKR and backed by Silverlake Partners and AlpInvest Partners in 2006. The deal, which included debt and other liabilities totalling at €4bn, valued the business at €8.3bn.

Founded in 1950, NXP develops semiconductors, system solutions and software for TVs, set-top boxes, identification applications, mobile phones, cars and other electronic devices. Some 35 customers, including Apple, Bosch, Nokia, Philips, Continental, Samsung, Sony, Cisco and Flextronics, account for about half of total sales. The company employs 28,000 people in more than 30 countries.

NXP has applied for the new super priority notes to be listed on the Alternative Securities Market of the Irish Stock Exchange.

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• Topics
• Restructuring
• Benelux
• Technology
• Netherlands
• AlpInvest
• KKR