NXP Semiconductors Enters into Unsecured Loan Facility Agreement and Commercial Paper Program

NXP Semiconductors N.V., a leading semiconductor company, recently disclosed in an 8-K filing with the Securities and Exchange Commission that its wholly owned subsidiary, NXP B.V., has entered into two significant financial agreements.

Firstly, on November 22, 2024, NXP B.V. finalized a facility agreement with the European Investment Bank (EIB), securing a €640.0 million unsecured senior loan facility. The purpose of this funding is to support the research, development, and innovation of semiconductor devices, technologies, and solutions across five European countries. This agreement is supplemented by a guaranty involving NXP Funding LLC, NXP USA, Inc., and NXP Semiconductors N.V.

Under the terms of the facility agreement, borrowings can be denominated in U.S. Dollars or Euros and may carry either fixed or floating interest rates. Fixed-rate loans will be based on agreed rates, while floating rate loans will be tied to benchmark rates like EURIBOR or the USD reference rate. The maximum tenor for loans under this agreement is set at six years, and it includes defined covenants and default clauses similar to those in the company’s Revolving Credit Agreement.

Secondly, on November 21, 2024, NXP B.V., NXP Funding, NXP USA, and NXP Semiconductors N.V. collectively established an unsecured commercial paper program. This program allows for the issuance of short-term, unsecured commercial paper notes up to $2.0 billion, with the net proceeds earmarked for general corporate purposes. The agreement outlines the issuance, repayment, and potential re-borrowing of amounts over varying maturities under specific terms.

While no notes have been issued yet under the commercial paper program, four commercial paper dealers are designated initially to manage the program. The notes, planned for issuance in the U.S. commercial paper market, may bear interest at rates defined at the time of issuance and are subject to specific maturities.

Investors are reminded that neither the Notes nor the Loans have been registered under the Securities Act of 1933 or state securities laws, limiting their offers and sales within the United States. The company also advised caution regarding forward-looking statements within the report, highlighting potential uncertainties associated with such statements.

For comprehensive details on the agreements, interested parties are encouraged to refer directly to the Company’s filings with the SEC. Copies of these filings are available on the Investor Relations website or the SEC’s official website.

This comprehensive financial update demonstrates NXP Semiconductors’ commitment to enhancing its research and development capabilities while strategically managing its financial obligations and liquidity.

These agreements mark significant steps for NXP Semiconductors as it further solidifies its position in the semiconductor industry.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read NXP Semiconductors’s 8K filing here.

About NXP Semiconductors

NXP Semiconductors N.V. offers various semiconductor products. The company's product portfolio includes microcontrollers; application processors, including i.MX application processors, and i.MX 8 and 9 family of applications processors; communication processors; wireless connectivity solutions, such as near field communications, ultra-wideband, Bluetooth low-energy, Zigbee, and Wi-Fi and Wi-Fi/Bluetooth integrated SoCs; analog and interface devices; radio frequency power amplifiers; and security controllers, as well as semiconductor-based environmental and inertial sensors, including pressure, inertial, magnetic, and gyroscopic sensors.