NXP Semiconductors Announces Pricing of Senior Unsecured Notes Offering

Rhea-AI Summary

NXP Semiconductors (NASDAQ:NXPI) has announced the pricing of a significant senior unsecured notes offering through its subsidiaries. The offering consists of $500 million of 4.300% notes due 2028, $300 million of 4.850% notes due 2032, and $700 million of 5.250% notes due 2035.

The notes will be fully guaranteed by NXP Semiconductors N.V. and are expected to close around August 19, 2025. The company plans to use the proceeds to redeem $500 million of 5.350% notes and $750 million of 3.875% notes, both due 2026. Any excess proceeds will be held as cash or used for general corporate purposes.

Positive

• Strategic refinancing of existing debt with longer maturities (extending from 2026 to 2028-2035)
• Diversification of debt maturity profile with three different tranches
• Total offering size of $1.5 billion demonstrates strong market confidence

Negative

• Increased interest rates on new notes compared to the 3.875% 2026 notes being redeemed
• Additional costs associated with early redemption premiums and fees
• Increased long-term debt obligations with maturities extending to 2035

Insights

Corporate Finance Expert

NXP's $1.5B debt refinancing extends maturities and offers mixed interest rate outcomes with longer-dated notes at higher rates.

NXP Semiconductors has priced a $1.5 billion senior unsecured notes offering across three tranches with varying maturities and interest rates. The offering includes $500 million of 4.300% notes due 2028, $300 million of 4.850% notes due 2032, and $700 million of 5.250% notes due 2035.

The primary purpose of this debt issuance is to refinance existing obligations - specifically to redeem $500 million of 5.350% notes and $750 million of 3.875% notes, both maturing in 2026. This represents a strategic liability management exercise with mixed interest rate outcomes.

On the $500 million portion, NXP is achieving interest savings by replacing 5.350% notes with 4.300% notes - a 1.05% reduction. However, on the $750 million portion, they're replacing 3.875% notes with higher-rate tranches. The company is essentially extending its debt maturity profile at the cost of higher interest rates on a portion of the debt, reflecting the current interest rate environment.

The $250 million incremental borrowing (difference between $1.5 billion new issuance and $1.25 billion being redeemed) provides additional liquidity for capital expenditures or short-term debt repayment. The notes are senior unsecured obligations guaranteed by the parent company but structurally subordinated to liabilities of other subsidiaries and effectively junior to any future secured debt.

This liability management exercise demonstrates NXP's proactive approach to managing its debt maturity profile while navigating the current higher interest rate environment. The transaction is expected to close on August 19, 2025.

EINDHOVEN, The Netherlands, Aug. 12, 2025 (GLOBE NEWSWIRE) -- NXP Semiconductors N.V. (NASDAQ:NXPI) (together with its subsidiaries, “NXP”) announced today the pricing of an offering by its subsidiaries NXP B.V., NXP Funding LLC and NXP USA, Inc. (together, the “Issuers”) of $500,000,000 aggregate principal amount of 4.300% senior unsecured notes due 2028 (the “2028 Notes”), $300,000,000 aggregate principal amount of 4.850% senior unsecured notes due 2032 (the “2032 Notes”) and $700,000,000 aggregate principal amount of 5.250% senior unsecured notes due 2035 (the “2035 Notes” and, collectively with the 2028 Notes and the 2032 Notes, the “Notes”).

The Notes will be fully and unconditionally guaranteed on a senior basis by NXP Semiconductors N.V. and will be structurally subordinated to the liabilities, including trade payables, of NXP’s other subsidiaries. In addition, the Notes will be effectively junior to all future secured debt of the Issuers and NXP Semiconductors N.V., to the extent of the value of the assets securing such debt. The issuance of the Notes is expected to close on or around August 19, 2025 subject to customary closing conditions.

NXP intends to use the net proceeds from the offering of the Notes to redeem the $500 million aggregate principal amount of outstanding dollar-denominated 5.350% senior unsecured notes due 2026 (the “5.350% 2026 Notes”) and the $750 million aggregate principal amount of outstanding dollar-denominated 3.875% senior unsecured notes due 2026 (the “3.875% 2026 Notes”), in accordance with the terms of the applicable indenture governing such notes, including all premiums, accrued interest and costs and expenses related to such redemptions. Pending such application, such proceeds and the excess net proceeds from the Notes will be temporarily held as cash and other short-term securities or used for general corporate purposes, which may include capital expenditures or short-term debt repayment.

Barclays Capital Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC and UBS Investment Bank are acting as joint book-running managers for the offering of the Notes.

This offering is only being made pursuant to an effective shelf registration statement (including a prospectus and preliminary prospectus supplement) filed by the Issuers and NXP with the Securities and Exchange Commission (the “SEC”). Before you invest, you should read the registration statement, prospectus, the related preliminary prospectus supplement and the other documents incorporated by reference that NXP has filed with the SEC for more complete information about NXP and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the Issuers, NXP, any underwriter or any dealer participating in the offering will arrange to send you the documents if you request them by contacting Barclays Capital Inc. at 1-888-603-5847; Goldman Sachs & Co. LLC at 1-866-471-2526; J.P. Morgan Securities LLC at 1-212-834-4533; PNC Capital Markets LLC at 1-855-881-0697 or UBS Investment Bank at 1-833-481-0269.

The Notes are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the European Economic Area (the “EEA”). For these purposes, a “retail investor” means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU (as amended, “MiFID II”); or (ii) a customer within the meaning of Directive (EU) 2016/97 (as amended, the “Insurance Distribution Directive”), where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II; or (iii) not a qualified investor as defined in Regulation (EU) 2017/1129 (as amended). Consequently, no key information document required by Regulation (EU) No 1286/2014 (as amended, the “PRIIPs Regulation”) for offering or selling the Notes or otherwise making them available to retail investors in the EEA has been prepared and therefore offering or selling the Notes or otherwise making them available to any retail investor in the EEA may be unlawful under the PRIIPs Regulation.

The Notes are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the United Kingdom. For these purposes, a “retail investor” means a person who is one (or more) of: (i) a retail client as defined in point (8) of Article 2 of Regulation (EU) 2017/565 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (the “EUWA”); or (ii) a customer within the meaning of the provisions of the Financial Services and Markets Act 2000 (as amended, the “FSMA”) and any rules or regulations made under the FSMA to implement the Insurance Distribution Directive, where that customer would not qualify as a professional client as defined in point (8) of Article 2(1) of Regulation (EU) No 600/2014 as it forms part of domestic law by virtue of the EUWA; or (iii) not a qualified investor as defined in Article 2 of Regulation (EU) 2017/1129 as it forms part of domestic law by virtue of the EUWA. Consequently, no key information document required by Regulation (EU) No 1286/2014 (as amended, the “UK PRIIPs Regulation”) for offering or selling the Notes or otherwise making them available to retail investors in the United Kingdom has been prepared and therefore offering or selling the Notes or otherwise making them available to any retail investor in the United Kingdom may be unlawful under the UK PRIIPs Regulation.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, qualification or exemption under the securities laws of any such jurisdiction. This press release shall not constitute a notice of redemption under the applicable indenture governing the 5.350% 2026 Notes or the 3.875% 2026 Notes or an obligation to issue a notice of redemption, or an offer to tender for, or purchase, any of the 5.350% 2026 Notes or the 3.875% 2026 Notes or any other security.

About NXP Semiconductors
NXP Semiconductors N.V. (NASDAQ: NXPI) is the trusted partner for innovative solutions in the automotive, industrial & IoT, mobile, and communications infrastructure markets. NXP’s “Brighter Together” approach combines leading-edge technology with pioneering people to develop system solutions that make the connected world better, safer, and more secure. The company has operations in more than 30 countries and posted revenue of $12.61 billion in 2024.

Forward-looking Statements

This press release contains forward-looking statements which include statements regarding the offering of the Notes. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include the following: the risk that the offering of the Notes may not be completed on the proposed terms, or at all. The following risks, among others, could affect NXP’s business and financial performance: market demand and semiconductor industry conditions; the ability to successfully introduce new technologies and products; the demand for the goods into which NXP’s products are incorporated; global trade disputes, potential increase of barriers to international trade, including the imposition of new or increased tariffs, and resulting disruptions to NXP’s established supply chains; the impact of government actions and regulations, including as a result of executive orders, including restrictions on the export of products and technology; increasing and evolving cybersecurity threats and privacy risks; the ability to accurately estimate demand and match NXP’s production capacity accordingly or obtain supplies from third-party producers; the access to production capacity from third-party outsourcing partners, and any events that might affect their business or NXP’s relationship with them; the ability to secure adequate and timely supply of equipment and materials from suppliers; the ability to avoid operational problems and product defects and, if such issues were to arise, to correct them quickly; the ability to form strategic partnerships and joint ventures and to successfully cooperate with NXP’s strategic alliance partners; the ability to win competitive bid selection processes; the ability to develop products for use in customers’ equipment and products; the ability to successfully hire and retain key management and senior product engineers; global hostilities, including the invasion of Ukraine by Russia and resulting regional instability, sanctions and any other retaliatory measures taken against Russia and the continued hostilities and the armed conflict in the Middle East, which could adversely impact the global supply chain, disrupt NXP’s operations or negatively impact the demand for it’s products in it’s primary end markets; the ability to maintain good relationships with NXP’s suppliers; the ability to integrate acquired businesses in an efficient and effective manner; the ability to generate sufficient cash, raise sufficient capital or refinance corporate debt at or before maturity to meet both NXP’s debt service and research and development and capital investment requirements; and a change in tax laws could have an effect on NXP’s estimated effective tax rates. Readers are cautioned not to place undue reliance on forward-looking statements, which speak to results only as of the date the statements were made. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements in the future. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in NXP’s filings with the SEC.

For more information, please contact:

Investors:	Media:
Jeff Palmer	Paige Iven
Jeff.palmer@nxp.com	Paige.iven@nxp.com
(408) 205-0687	(817) 975-0602

NXP-CORP

FAQ

What is the total value of NXP Semiconductors' new notes offering in 2025?

NXP Semiconductors is offering $1.5 billion in total, consisting of $500 million due 2028, $300 million due 2032, and $700 million due 2035.

What are the interest rates for NXPI's new senior notes?

The notes carry interest rates of 4.300% for 2028 notes, 4.850% for 2032 notes, and 5.250% for 2035 notes.

How will NXP use the proceeds from the 2025 notes offering?

NXP will use the proceeds to redeem $500 million of 5.350% notes and $750 million of 3.875% notes due 2026, with excess funds held as cash or used for general corporate purposes.

When will NXPI's new notes offering close?

The notes offering is expected to close on or around August 19, 2025, subject to customary closing conditions.

Who are the joint book-running managers for NXPI's 2025 notes offering?

The joint book-running managers are Barclays Capital, Goldman Sachs, J.P. Morgan Securities, PNC Capital Markets, and UBS Investment Bank.