By Paul A. Harris
St. Louis, Dec. 22 - Semiconductor Note Participation Trust, a subsidiary of ON Semiconductor, Inc., priced $97.825 million proceeds of zero-coupon junior subordinated accretion notes late Friday to yield 15.003%, a source said.
The notes priced at 107.50, which represents an approximately 70% discount to their 153.739 accreted value as of Dec. 30. The notes have a 10% accretion rate and a 15.003% yield.
Citigroup was the bookrunner on the Rule 144A transaction, which is not rated.
The original notes, due Aug. 4, 2011, priced at par. They were sold on Aug. 4, 1999 to Motorola Inc. by ON Semiconductor as part of the acquisition of Semiconductor Components Group, a Motorola subsidiary.
The originally issued notes are held by the trust. The terms of the seller notes are identical to those of the original notes due Aug. 4, 2011.
Phoenix-based ON Semiconductor supplies power and data management semiconductors and standard semiconductor components.
| Issuer: | Semiconductor Note Participation Trust (ON Semiconductor, Inc.)
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| Proceeds: | $97.825 million (91,000 bonds)
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| Maturity: | Aug. 4, 2011
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| Security description: | Junior subordinated accretion notes
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| Bookrunner: | Citigroup
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| Coupon: | Zero
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| Accretion rate: | 10%
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| Accretion dates: | Feb. 1 and Aug. 1
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| Price: | 107.50 (approximately 70% discount to the 153.739 accreted value as of Dec. 30)
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| Yield: | 15.003%
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| Spread: | 1,116 basis points
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| Calls: | Callable immediately after settlement
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| Settlement date: | Dec. 30
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| Ratings: | Not rated
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