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ON Semiconductor signs $1.5 billion five-year senior revolver
By Mary-Katherine Stinson
Lexington, Ky., June 26 – ON Semiconductor Corp. entered a new $1.5 billion senior revolving credit facility on June 22 with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.
The revolving credit facility will mature on June 22, 2028.
Borrowings under the new agreement may be incurred in dollars, sterling, euros, yen or any other approved currency and will accrue interest at SOFR, Euribor or Tibor plus 125 basis points.
The three-tier grid has margins ranging from 125 bps to 175 bps. The commitment fee will be 20 bps, 25 bps or 30 bps.
There will be mandatory prepayments if the total revolving loans and letters of credit exceeds the total lender commitments.
JPMorgan Chase Bank, NA, Bank of America, NA, Barclays, BMO Capital Markets Corp., BNP Paribas Securities Corp., Citibank, NA, Credit Agricole CIB, Deutsche Bank Securities, Inc., Goldman Sachs Bank USA, HSBC Securities (USA) NA, Morgan Stanley Senior Funding, Inc., MUFG Bank, Ltd., PNC Bank, NA and Sumitomo Mitsui Banking Corp. are joint lead arrangers and joint bookrunners.
BMO Capital Markets is the sustainability structuring agent.
On the closing date, ON borrowed $375 million under the revolver.
Proceeds were used to repay and terminate outstanding debt under the company’s existing credit agreement with Deutsche Bank AG, New York branch dated April 15, 2016. A letter of credit previously issued under the existing credit agreement was allowed to remain outstanding under the new credit agreement.
Proceeds of any borrowings after the closing date will be available for working capital, capital expenditures and other general corporate purposes of the company and its restricted subsidiaries, including the financing of permitted acquisitions.
ON Semiconductor is a Scottsdale, Ariz.-based semiconductor company.
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