NXP Semiconductors NV (NASDAQ:NXPI) announced the pricing of the previously announced offering by its subsidiaries NXP B.V. and NXP Funding LLC of USD 600 million aggregate principal amount of senior unsecured notes due 2020 (the “2020 Notes”) and USD 400 million aggregate principal amount of senior unsecured notes due 2022 (the “2022 Notes”, together with the 2020 Notes, the “Notes”) pursuant to Rule 144A and Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”).
The Notes will be fully and unconditionally guaranteed, jointly and severally, on a senior basis by certain of NXP’s wholly-owned subsidiaries located in the Netherlands and the United States (the “Notes Guarantees”) and will be structurally subordinated to the liabilities, including trade payables, of NXP’s subsidiaries that have not guaranteed the Notes. In addition, the Notes will be effectively subordinated to all secured debt of the issuers and the guarantors, to the extent of the value of the assets securing such debt. The issuance of the Notes is expected to close on or around June 9, 2015.
The 2020 Notes will bear interest at 4.125% per annum and will mature on June 15, 2020. The 2022 Notes will bear interest at 4.625% per annum and will mature on June 15, 2022. Interest on the Notes will be payable semi-annually on December 15 andJune 15 of each year, beginning on December 15, 2015.
NXP intends to use the net proceeds from the offering of the Notes, together with cash on hand and/or other available financing resources, (i) to finance the cash portion of the merger consideration payable pursuant to the terms of the merger agreement entered into between NXP and Freescale Semiconductor, Ltd. (“Freescale”) on March 1, 2015, under which, subject to the terms and conditions thereof, NXP will merge with Freescale (the “Merger”), (ii) to refinance certain of Freescale’s indebtedness that becomes due as a result of the Merger, (iii) to effect the repayment of any amounts drawn under Freescale’s outstanding revolving credit facility and, if NXP so elects, the outstanding revolving credit facility of NXP, and (iv) to pay certain transaction costs. Alternatively, if the Merger does not close, NXP intends to use the net proceeds from the offering of the Notes to redeem certain of NXP’s existing indebtedness and for general corporate purposes. (Original Source)
Shares of NXP Semiconductors closed today at $110.63, down $1.35 or 1.21%. NXPI has a 1-year high of $112.81 and a 1-year low of $53.81. The stock’s 50-day moving average is $102.12 and its 200-day moving average is $89.42.
On the ratings front, NXP Semiconductors has been the subject of a number of recent research reports. In a report issued on May 29, Canaccord Genuity analyst Matt Ramsay maintained a Buy rating on NXPI, with a price target of $130, which implies an upside of 17.5% from current levels. Separately, on the same day, Stifel Nicolaus’ Tore Svanberg reiterated a Buy rating on the stock and has a price target of $130.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Matt Ramsay and Tore Svanberg have a total average return of 13.9% and 17.9% respectively. Ramsay has a success rate of 78.2% and is ranked #358 out of 3610 analysts, while Svanberg has a success rate of 74.0% and is ranked #116.
The street is mostly Bullish on NXPI stock. Out of 10 analysts who cover the stock, 9 suggest a Buy rating and one recommend to Hold the stock. The 12-month average price target assigned to the stock is $127.57, which implies an upside of 15.3% from current levels.
NXP Semiconductors NV is a semiconductor company providing High Performance Mixed Signal & Standard Product solutions. Its solutions are used for automotive, identification, wireless infrastructure, industrial, mobile, consumer & computing applications.