ON Semiconductor launches $2 billion term loan B at Libor plus 450 bps

By Sara Rosenberg

New York, March 3 – ON Semiconductor Corp. launched on Thursday its $2 billion seven-year covenant-light term loan B with price talk of Libor plus 450 basis points with a 0.75% Libor floor and an original issue discount of 98, according to a market source.

The B loan has 101 soft call protection for six months, the source said.

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

Commitments are due on March 16.

The company’s $2.4 billion credit facility (Ba1/BB) also includes a $400 million five-year revolver.

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.

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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