UPDATE 2-Deutsche Bank loses spot on KKR’s NXP IPO-source

* DB refused to renew $60 mln credit line for NXP -source

* Underwriting fees wouldn’t cover potential loan loss-source

* DB lost spot as underwriter -source

(Adds explanation on DB’s credit decision, background)

By Clare Baldwin

NEW YORK, April 13 (BestGrowthStock) – Deutsche Bank AG (DBKGn.DE: )
lost its spot underwriting Kohlberg Kravis Roberts & Co’s [KKR.UL]
initial public offering of Dutch semiconductor company NXP BV
because it refused to renew a line of credit for the company, a
source said on Tuesday.

Private equity firm KKR had asked Deutsche Bank to renew a $60
million line of credit to NXP as a condition for being an
underwriter on the deal, said the source, who was close to the
negotiations. The source declined to be named, citing
confidentiality agreements.

The source said Deutsche Bank’s decision not to renew the
credit line was made by the underwriting committee and that
underwriting fees would not have covered a potential loan loss.

NXP is owned by private equity firms including KKR, Bain
Capital, Silver Lake Partners, Apax and AlpInvest Partners
N.V., which bought just over 80 percent of the company from
Philips Electronics (PHG.AS: ) in 2006, according to NXP’s website.

NXP makes semiconductors used in the automotive,
industrial, and consumer industries, among others.

Deutsche Bank and KKR both declined to comment.

The story was first reported by the New York Post earlier
on Tuesday.

The IPO would be worth about $1 billion, according to media
reports. The reports said other underwriters currently under
consideration include Barclays PLC (BARC.L: ), Goldman Sachs (GS.N: ),
JPMorgan Chase & Co (JPM.N: ), Morgan Stanley (MS.N: ) (Read more about the money market today. ), and Credit
Suisse AG (CSGN.VX: ). None of the banks were immediately available
for comment.

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(Reporting by Clare Baldwin, additional reporting by Megan
Davies; Editing by Phil Berlowitz)

UPDATE 2-Deutsche Bank loses spot on KKR’s NXP IPO-source