ON Semiconductor to launch $2.38 billion term loan B on Tuesday

By Sara Rosenberg

New York, March 10 – ON Semiconductor Corp. is scheduled to hold a lender call at 10 a.m. ET on Tuesday to launch a $2.38 billion covenant-light term loan B due March 2023, according to a market source.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, HSBC, SMBC and BMO Capital Markets are the bookrunners on the deal, with Deutsche Bank the administrative agent.

Price talk on the loan is Libor plus 225 basis points to 250 bps with a 0% Libor floor and a par issue price, the source said.

The term loan includes 101 soft call protection for six months.

Proceeds will be used to reprice an existing term loan B from Libor plus 325 bps with a 0% Libor floor.

Commitments for existing lenders are due at noon ET on Thursday, and commitments for new lenders are due at noon ET on March 17, the source added.

Closing is expected on March 31.

ON Semiconductor is a Phoenix-based semiconductor company.

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