On Semiconductor seeks amendment to lower rate, extend maturity

By Sara Rosenberg

New York, Feb. 7 - On Semiconductor Corp. is looking to amend its senior secured credit facility to lower pricing and extend the maturity date, according to a company news release.

In addition, the amendment would enhance flexibility to incur indebtedness, repurchase stock and make restricted payments and investments.

At Dec. 31, there was about $199 million of debt outstanding under the facility.

"With our cash, cash equivalents and short-term investments exiting the fourth quarter of 2006 at about $269 million, our ongoing strong cash flow generating capabilities of the business and the low principal amount associated with our senior secured credit facility, we believe we are in a position to reduce the interest rate associated with our senior secured credit facility as well as amend our existing agreement to enable the company to be opportunistic in taking advantage of market conditions for share repurchases, debt prepayments and other activities currently restricted under the existing credit agreement," said Donald Colvin, executive vice president and chief financial officer, in the release.

ON Semiconductor is a Phoenix-based designer, manufacturer and marketer of power and data management semiconductors and standard semiconductor components.

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