KKR and Silver Lake to list NXP in $1bn IPO

Francois Rowell
29 March 2010

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KKR, Bain Capital, Apax Partners, AlpInvest Partners and Silver Lake Capital-backed NXP, a semiconductor company, is set to be listed on the public market with the aim to raise $1bn.

Reports suggest that Morgan Stanley, Barclays, Credit Suisse, Deutsche Bank and Goldman Sachs have been mandated to run its stock sale.

The private equity consortium originally acquired an 80% share in NXP in 2006 from parent company 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 payable in 2015 for $128m, and issue $131m worth of super priority notes due 2013 for $102m in July in 2009. In 2009, NXP 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. Some 35 customers, including Apple, Bosch, Nokia, Philips, Continental, Samsung, Sony, Cisco and Flextronics, account for about half of total sales.The Eindhoven-based company has 29,000 employees in over 30 countries and recorded sales of $5.8bn in 2008.