News Article
NXP Semiconductors strengthens its liquidity
The company draws US$ 400 million under its revolving credit facility.
NXP Semiconductors announces that it is drawing US$ 400 million under its available revolving credit facility.
Karl-Henrik Sundström, Chief Financial Officer of NXP said today: "In view of the current global financial turmoil we are drawing US$ 400 million under our revolving credit facility. This is a proactive financial decision in order to secure availability of this facility in a turbulent financial market environment."
At the end of Q3, NXP's cash position amounted to US$ 1535 million. With the proceeds from the draw down, NXP further strengthens its already strong liquidity position. NXP's financial beginning was not the easiest when its parent company sold 80% of NXP's shares to Kohlberg Kravis Roberts & Co. (KKR). Keeping 20%, Philips speculated on a huge future payout.
To finance the purchase, KKR borrowed heavily and tacked the loans on to NXP's balance sheet, leaving the company with a huge debt when the transaction closed. NXP's long term debt was as high as $6.7 billion at one time, according to Standard & Poor's, which calculated the company spends approximately $485 million annually servicing the debt.
Karl-Henrik Sundström, Chief Financial Officer of NXP said today: "In view of the current global financial turmoil we are drawing US$ 400 million under our revolving credit facility. This is a proactive financial decision in order to secure availability of this facility in a turbulent financial market environment."
At the end of Q3, NXP's cash position amounted to US$ 1535 million. With the proceeds from the draw down, NXP further strengthens its already strong liquidity position. NXP's financial beginning was not the easiest when its parent company sold 80% of NXP's shares to Kohlberg Kravis Roberts & Co. (KKR). Keeping 20%, Philips speculated on a huge future payout.
To finance the purchase, KKR borrowed heavily and tacked the loans on to NXP's balance sheet, leaving the company with a huge debt when the transaction closed. NXP's long term debt was as high as $6.7 billion at one time, according to Standard & Poor's, which calculated the company spends approximately $485 million annually servicing the debt.