ON Semiconductor buys back $34 million of its zero-coupon convertibles

By Devika Patel

Knoxville, Tenn., May 21 - ON Semiconductor Corp. said it repurchased approximately $34 million of its zero-coupon convertible senior subordinated notes, at approximately 94%, for approximately $32 million in cash.

Under its completed debt repurchase program, the company retired a total of approximately $100 million in convertibles in the first and second quarters.

"As of the end of the first quarter of 2009, we had approximately $402 million of cash and cash equivalents on our balance sheet," executive vice president and chief financial officer Donald Colvin said in a press release. "Aggressively managing costs during this challenging economic period has allowed ON Semiconductor to continue generating positive cash flow from operating activities and enables the company to pro-actively reduce the overall leverage of the company.

"Since the third quarter of 2008, the company has retired approximately $204 million in face value of debt. We remain committed to improving the capital structure of the company and continue to examine opportunities to improve shareholder value."

ON Semiconductor is a Phoenix-based designer, manufacturer and marketer of power and data management semiconductors and standard semiconductor components.

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