+44 (0)24 7671 8970
More publications     •     Advertise with us     •     Contact us
*/
News Article

NXP Semiconductors strengthens its liquidity

News
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.
×
Search the news archive

To close this popup you can press escape or click the close icon.
Logo
×
Logo
×
Register - Step 1

You may choose to subscribe to the Silicon Semiconductor Magazine, the Silicon Semiconductor Newsletter, or both. You may also request additional information if required, before submitting your application.


Please subscribe me to:

 

You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in: