NXP Semiconductor has launched a $500 million add-on to its 4.125% senior notes due 2021, which will be immediately fungible. Barclays is sole bookrunner. Pricing will take place today, and there will be no investor call.
Proceeds from the 144A-for-life deal will be used to refinance the remaining $200 million of senior notes due 2016, and for general corporate purposes.
The original $850 million of 2021 bonds were issued in May, alongside 4.625% senior notes due 2023. Both series priced at par, and closed last night at 103.5 yielding 3.35%, and 103.75 yielding 3.9%, respectively. Terms include an investment-grade covenant package consistent with the existing senior notes.
Current senior notes ratings are BB+/Ba2. When the company last issued in May, Moody’s weighed in with that same assignment after upgrading the NXP secured debt rating to Baa2, from Baa3, and affirming the Ba1 corporate credit rating, with a stable outlook.
NXP is based in the Netherlands, but its shares trade on the Nasdaq under the ticker NXPI. The firm has a market cap of roughly $30 billion. — Luke Millar
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