S&P assigns ON Semiconductor loan BB

S&P said it assigned a BB rating to ON Semiconductor Corp.’s proposed $1.635 billion term loan due 2026, with a recovery rating of 3, reflecting S&P’s expectation of meaningful recovery (50%-70% rounded estimate: 55%) in the event of a payment default.

The agency also said its ratings on the company are unaffected by the report the company would issue an incremental $500 million senior secured term loan and use the proceeds toward paying down a portion of its $1.9 billion revolving credit facility, in a leverage-neutral transaction.

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