ON Semiconductor plans to repay some term B debt via new convertibles

By Wendy Van Sickle

Columbus, Ohio, March 13 – ON Semiconductor Corp. plans to repay a portion of its term loan B debt with proceeds of a private offering of $500 million of convertible senior notes due October 2023, according to a press release.

ON Semiconductor said its intent is to mitigate its interest rate exposure by replacing floating-rate debt with fixed-rate debt and lowering its cash interest expense.

In connection with the offering, the company said it may repurchase up to $70 million of its common stock with cash on hand and borrowings under its revolving credit facility.

ON Semiconductor is a Phoenix-based semiconductor company.

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