New Issue: ON Semiconductor prices upsized $700 million eight-year notes at par to yield 3 7/8%

By Paul A. Harris

Portland, Ore., Aug. 18 – ON Semiconductor Corp. priced an upsized $700 million issue of eight-year senior notes (Ba2/BB) at par to yield 3 7/8% on Tuesday, according to market sources.

The issue size increased from $500 million.

The yield printed at the tight end of yield talk in the 4% area. Initial guidance was in the low 4% area.

BofA Securities Inc., BBVA Securities Inc., BMO Capital Markets Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, MUFG and SMBC Nikko Securities America Inc. were the joint bookrunners.

The Phoenix-based semiconductor supplier plans to use the proceeds, together with cash on hand, to repay its approximately $1 billion outstanding revolver balance.

Issuer:	ON Semiconductor Corp.
Amount:	$700 million, increased from $500 million
Maturity:	Sept. 1, 2028
Securities:	Senior notes
Bookrunners:	BofA Securities Inc., BBVA Securities Inc., BMO Capital Markets Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, MUFG and SMBC Nikko Securities America Inc.
Co-managers:	Barclays, BOK Financial Securities Inc. and Morgan Stanley & Co. LLC
Coupon:	3 7/8%
Price:	Par
Yield:	3 7/8%
Spread:	335 bps
Call protection:	Three years
Trade date:	Aug. 18
Settlement date:	Aug. 21
Ratings:	Moody's: Ba2
	S&P: BB
Distribution:	Rule 144A and Regulation S for life
Price talk:	4% area
Marketing:	Roadshow

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