ON Semiconductor refinances term loan to lower interest rates by 75 basis points

By Sara Rosenberg

New York, Nov. 26 - ON Semiconductor Corp. said it refinanced about $369 million of term loans under its senior secured credit facility, reducing the interest rate to Libor plus 325 basis points from Libor plus 400 basis points.

J.P. Morgan Securities Inc. and Credit Suisse First Boston acted as joint bookrunners and joint lead arrangers for the transaction.

As a result of the reduced borrowing rate, the Phoenix semiconductor company expects to save about $3 million per year in interest costs based on the current loan balance, according to a company news release.

"This is another step in our long-term de-leveraging strategy to reduce debt and related financing costs," said Donald Colvin, senior vice president and chief financial officer, in the release. "We are appreciative of the continued support that ON Semiconductor has received in the investment community."

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