NXP to borrow $500m
NXP is to sell $500 million worth of unsecured senior notes paying interest of 3.5% and due for repayment in 2016 and use the proceeds to pay down existing debt due for repayment in 2018 which carries interest of 9.75%.
NXP, which was bought by a private equity consortium led by KKR in 2006 which loaded up the company with $6 billion of debt, still has debt of $3.38 billion as of the end of Q2.
It has net cash of only $569 million.
In Q2 NXP paid $47 million in interest charges on its debt.
NXP’s Q2 revenues were $1.18 billion – about the same as they were in 2006 when private equity bought the company.