ON Semiconductor to launch $2 billion term loan B on Thursday

By Sara Rosenberg

New York, Feb. 29 – ON Semiconductor Corp. is scheduled to hold a bank meeting at 10 a.m. ET in New York on Thursday to launch a $2 billion seven-year covenant-light term loan B, according to a market source.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, HSBC Securities (USA) Inc. and SMBC are the bookrunners on the deal.

Expected ratings are mid-BB, the source said.

Commitments are due on March 16.

The company’s $2.4 billion credit facility also includes a $400 million five-year revolver, the source continued.

Proceeds will be used to help fund the acquisition of Fairchild Semiconductor International Inc. for $20.00 per share in an all cash transaction valued at about $2.4 billion.

Other funds for the transaction are expected to come from a $400 million senior unsecured notes offering, the source added.

Closing is expected in the second quarter.

ON Semiconductor is a Phoenix-based semiconductor company. Fairchild Semiconductor is a San Jose, Calif.-based semiconductor company.

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