ON Semiconductor enters into $325 million five-year revolving loan

By Jennifer Chiou

New York, Dec. 23 - ON Semiconductor Corp. and wholly owned subsidiary Semiconductor Components Industries, LLC entered into a $325 million five-year senior revolving credit facility with JPMorgan Chase Bank, NA as administrative agent and Bank of America, NA and Royal Bank of Scotland plc as co-syndication agents, according to an 8-K filing with the Securities and Exchange Commission.

Based on the company's current total leverage ratio, the facility is expected to bear interest at Libor plus 175 basis points if drawn, according to a news release. There is a yearly commitment fee of 35 bps that can vary based on the total leverage ratio.

The new facility includes $40 million of availability for letters of credit, $15 million for swingline loans and a foreign currency sublimit of $75 million.

ON Semiconductor has the ability to increase the size of the facility from time to time in increments of $10 million as long as the total amount of all increases does not exceed $125 million, the filing added.

Under the agreement, the company is required to maintain a maximum total leverage ratio of less than 3.75 to 1.00 and a minimum interest coverage ratio of 3.50 to 1.00.

Proceeds may be used for general corporate purposes, working capital and acquisitions.

ON Semiconductor is a Phoenix-based semiconductor company.

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