ON Semiconductor abandons $400 million notes offer, ups bank debt

By Paul A. Harris and Sara Rosenberg

Portland, Ore., March 16 – ON Semiconductor Corp. abandoned plans to sell $400 million of senior notes, a market source said on Wednesday.

In place of the notes the company increased its seven-year covenant-light term loan B to $2.2 billion from $2 billion and upsized its five-year revolver to $400 million from $200 million.

The debt is being put in place for the acquisition of Fairchild Semiconductor International Inc. for $20.00 per share in an all-cash transaction valued at about $2.4 billion.

Closing on the acquisition is expected in the second quarter. The credit facility will fund into escrow.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.