Chip producer NXP Semiconductors will market 2 billion dollars (around 1.66 billion euros) in green bonds for developing energy-saving chips. Such chips can be used in adapters and electric vehicles, among other things.
NXP intends to use the net proceeds of the offering of the 2030 Notes to finance or refinance, in whole or in part, one or more eligible green projects, which are defined as investments in (A) research and development for NXP’s (i) “green chip” resonant solutions, (ii) battery control and energy management for electric and hybrid cars, (iii) Advanced Driver Assistance Systems, (iv) mobile device “beam steering”, (v) edge processing portfolio and (vi) smart building technologies, and (B) energy efficiency measures at NXP’s manufacturing and non-manufacturing facilities. Pending the allocation of an amount equal to the net proceeds of the 2030 Notes to finance or refinance eligible green projects, the net proceeds of the 2030 Notes, together with the net proceeds of the 2025 Notes and the 2027 Notes, will be temporarily held as cash and other short term securities or temporarily used for the repayment of indebtedness, which may include the refinancing of the $1,350 million aggregate principal amount of outstanding 4.125% Senior Notes due 2021, and other corporate expenditures.
“We are very pleased by the positive market reception to NXP’s bond offering, and in particular the demand for our inaugural Green Bond. NXP realized significant interest in the offering, which was heavily oversubscribed, and achieved financing rates which were very attractive. Assuming NXP does not pay down its 2021 debt during the second quarter of 2020, the new offering will add about $8 million of interest expense versus our original second quarter 2020 guidance provided on April 28, 2020,” said Peter Kelly, NXP Chief Financial Officer.
The Notes were offered in the United States to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States to non-United States persons in compliance with Regulation S under the Securities Act. The Notes have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements.