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NXP raises $476m on Nasdaq

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Private equity-backed Dutch chipmaker NXP Semiconductors was floated on Nasdaq, at more than 28% below midpoint of the expected price range.

Proceeds from the IPO will be used to repay part of the company's $5.2bn debt.

The company sold 34 million shares at $14 per share; the expected price range prior to listing was $18-21. KKR, Bain Capital, Apax Partners, AlpInvest Partners and Silver Lake Capital originally aimed to raise $1bn. But the backers later lowered their expectations and, prior to the listing, announced they were settling for a more modest $663m.

NXR posted a 66% increase in Q1 2010 sales compared to the same period in 2009. However, its turnover has declined over 2007, 2008 and 2009, and the company is not yet profitable.

The private equity consortium originally acquired an 80% stake in 2006 from Royal Philips Electronics. The deal valued the company at €8.3bn at the time. The backers have since been trying to reduce the firm's debt pile by buying back $350m worth of senior secured notes and by issuing $131m worth of super priority notes in July 2009. NXP also took part in a $600 debt swap, which saw the firm reduce its debt by around $465m.

Founded in 1950, NXP develops semiconductors, system solutions and software for TVs, set-top boxes, identification applications, mobile phones, cars and other electronic devices. The Eindhoven-based company has 29,000 employees in over 30 countries and recorded sales of $3.8bn in 2009.

The unquote" team is currently researching this transaction. In-depth deal information for subscribers will follow shortly.

If you have any information regarding this transaction, please contact Grégoire Gille on +44 20 7484 9824 or gregoire.gille@incisivemedia.com

 

 

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