NXP Semiconductors N.V. announced on September 1, 2026, that its wholly owned subsidiary, NXP B.V., entered into a facility agreement with the European Investment Bank (EIB). The agreement establishes a $250.0 million unsecured senior loan facility.
The company stated that the proceeds from this loan are intended to fund the design and implementation of an expansion for an existing semiconductor assembly and test facility located in Kuala Lumpur, Malaysia.
Under the terms of the agreement, NXP B.V. is permitted to borrow funds denominated in either U.S. Dollars or Euros. The loans may carry either a fixed or floating interest rate. Fixed rate loans will bear interest at a rate agreed upon by NXP B.V. and EIB, subject to a floor of zero, and will include a margin determined by the Company’s credit rating. Floating rate loans will bear interest equal to the applicable benchmark rate (EURIBOR or USD reference rate) plus a fixed spread determined by EIB.
The loans under this facility agreement are set to have a maximum tenor of six years. The agreement includes affirmative and negative covenants and events of default consistent with those found in the Company’s Amended and Restated Revolving Credit Agreement dated February 6, 2026.
The obligations of NXP B.V. under the Facility Agreement, as well as a potential second facility agreement to be entered into in the future, are fully and unconditionally guaranteed by NXP Semiconductors N.V., NXP Funding LLC, and NXP USA, Inc., each a wholly owned subsidiary. The guaranty agreement was executed on September 2, 2026.
