ON Semiconductor buys $225.8 million 12% notes in tender, calls remainder

New York, May 4 - ON Semiconductor Corp. said it completed its tender offer for its 12% senior subordinated notes due 2009, purchasing $225.8 million of the securities, and added that it will redeem the remainder on Aug. 2.

The $225.8 million of notes tendered represents 86.9% of the amount outstanding.

The tender ended at midnight ET on May 3.

The redemption of the remaining notes will be at 106.0% of par plus accrued interest up to Aug. 2. ON Semiconductor will pay a total of $38.3 million including $2.06 million of accrued interest.

ON Semiconductor said on April 20 it had received the consents necessary to amend the indenture of the 12% notes from the holders.

The previously announced early tender deadline expired as scheduled at 5 p.m. ET on April 19 without extension.

ON Semiconductor said amendments to the indenture became operative on April 21, when payment for notes validly tendered by the early tender deadline was made.

ON Semiconductor, a Phoenix-based semiconductor manufacturer, said on April 6 that it had begun a cash tender offer for any and all its outstanding $260 million principal amount of 12% notes issued by the company and Semiconductor Components Industries LLC and said it was also soliciting consents to amend the note indenture.

It said that it would pay $1,089.06 per $1,000 principal amount for notes tendered by the early tender deadline, which includes a $30 per $1,000 principal amount early tender premium. Holders tendering after the early tender deadline but before the expiration will receive $1,059.06 per $1,000 principal amount but will not receive the early tender premium. All tendering holders will also receive accrued interest up to, but excluding, the settlement date.

The company said holders could not tender without also giving consents or consent without also tendering.

Morgan Stanley & Co. Inc. is the dealer manager for the offer (800 624-1808) and Georgeson Shareholder Communications Inc. is the information agent (800 377-9583; banks and brokerage firms call 212 440-9800).

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