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ON Semiconductor closes $800 million five-year revolver via JPMorgan
By Susanna Moon
Chicago, Oct. 11 - ON Semiconductor closed its expanded $800 million five-year senior revolving credit facility Monday with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.
Bank of America, NA, Royal Bank of Scotland plc and Sumitomo Mitsui Banking Corp. are the co-syndication agents. Morgan Stanley MUFG Loan Partners, LLC, Barclays Bank plc and Fifth Third Bank are the co-documentation agents.
The deal was announced Oct. 11 in a company press release.
The new credit agreement amends the company's agreement dated Dec. 23, 2011 with JPMorgan as administrative agent.
The upsized facility provides financial flexibility to support long-term business and financial objectives, the SEC filing noted.
The facility includes $40 million for the issuance of letters of credit, $15 million for swingline loans for short-term borrowings and a foreign-currency sublimit of $75 million.
The company may increase the size of the facility from time to time in increments of $10 million so long as the aggregate amount does not exceed $250 million.
As previously announced, the agreement expires in October 2018, and interest on the loans will be Libor plus a rate based on leverage.
There is an unused fee of 35 basis points, which can vary also based on leverage.
At closing, the company drew $120 million with funding expected to occur on Oct. 14.
The drawn proceeds will be used for general corporate purposes.
Under the terms, the company is required to maintain a maximum total leverage ratio of less than 3.75 times and a minimum interest coverage ratio of 3.5 times.
ON Semiconductor is a Phoenix-based semiconductor company.
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