NXP Juggles Debt
Six and a half years after being taken over by a private equity consortium led by KKR, NXP is still juggling its debt.
KKR et al put a $6bn debt load on the company back in 2006 to defray the cost of the purchase. That $6bn has been reduced by roughly half in the intervening years, but NXP still has to keep issuing new debt to repay old debt as the old debt gets nearer to maturity.
The new debt which NXP is taking on amounts to $750m due for repayment in 2018 which will be used to pay off old debt due in 2016.
The new debt will pay interest of 3.75%.