ON Semiconductor refinances $48 million of loans

New York, Jan. 2 - ON Semiconductor said it refinanced $48 million of term loans with a new loan provided to its joint venture in Leshan, China, by China Construction Bank.

The new loan is at Libor plus 150 basis points compared to Libor plus 325 basis points for the old term loan borrowings.

The new facility is made up of a $24 million 10-year tranche and a $24 million three-year tranche extendible for a further three years in certain circumstances.

"As we continue to increase our presence in China, this transaction is an important step in financing our development and investment in this rapidly growing market," said Donald Colvin, senior vice president and chief financial officer of the Phoenix semiconductor company, in a news release. "Furthermore, the reduced borrowing rate is expected to save ON Semiconductor approximately $1 million per year in interest costs."

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