ON Semiconductor to launch $2.4 billion term loan B on Tuesday

By Sara Rosenberg

New York, Sept. 19 – ON Semiconductor Corp. is scheduled to hold a lender call at 11:30 a.m. ET on Tuesday to launch a $2.4 billion covenant-light term loan B due March 2023, according to a market source.

Deutsche Bank Securities Inc. is the left lead on the deal.

Price talk on the term loan B is Libor plus 325 basis points with no floor and a par issue price, the source said.

The term loan B has 101 soft call protection for six months.

Proceeds will be used to reprice an existing $2.2 billion term loan B from Libor plus 450 bps with a 0.75% Libor floor and to pay down revolver borrowings.

Existing term loan B lenders will get paid out at the 101 repricing premium.

Commitments/cashless rolls are due at the close of business on Thursday, the source added.

Allocations are targeted for Friday.

ON Semiconductor is a Phoenix-based semiconductor company.

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