KKR-backed NXP reduces debt through $600m loan swap

KKR's Dutch portfolio company NXP, a semiconductor business, has agreed a deal with its creditors that will see debt-holders swap around $600m of loan notes for new secured bonds. The deal will result in the company's debt being reduced by around $465m.

The deal sees long term secured and unsecured loan notes exchanged for secured higher priority bonds, which are payable at a rate of 10% in 2013. $420m of old US dollar denominated notes were exchanged for $90m of the new super priority notes, while EUR131m of euro denominated notes were exchanged for EUR29m of the new bonds.

The company says it wants to cut its debt by about $1.36bn. The current deal will save the business around $30m in annual interest payments.

KKR led a consortium including Silverlake Partners and AlpInvest Partners to acquire the semiconductor business from Philips in 2006 in a deal valuing the business at around EUR8.3bn. NXP had recently sold its wireless chip division to French smart-card manufacturer Gemalto.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Industry
• Benelux