ON Semiconductor working to align capital structure with competitors

By Jennifer Lanning Drey

Portland, Ore., March 3 - ON Semiconductor Corp. is looking to have a capital structure more similar to its competitors in the analog industry, all of which have lower levels of leverage, Donald Colvin, chief financial officer, said Wednesday during a presentation at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco.

"As we continue to generate cash, we will apply that cash in the most tactically efficient manner to pay down debt," he said.

The CFO also noted during the presentation that ON Semiconductor does not have an appetite to take on any new "expensive, covenant-ridden bonds."

As a result, the company continues to maintain a very disciplined approach to merger and acquisition opportunities, he said.

"We are not desperate to buy," he said.

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

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