ON Semiconductor Raises $1.3B Via Upsized Private Note Offering For Debt Repayment

  • ON Semiconductor Corp ON raised $1.3 billion via an upsized institutional offering of 0.50% convertible senior notes due 2029.
  • The offer price implied a 32.5% premium to onsemi's February 23, 2023, closing price of $78.39.
  • onsemi upsized the offering from the prior size of $1.1 billion.
  • The initial purchasers of the notes have 13 days to procure additional notes up to an additional $200 million. 
  • onsemi planned to use offering proceeds with cash on hand to repay up to $1.09 billion of the existing debt, $148.6 million cost of the convertible note hedge transactions, and general corporate purposes.
  • onsemi may redeem the notes if the last reported sale price of onsemi's common stock has been at least 130% of the conversion price.
  • onsemi held $2.92 billion in cash and equivalents as of December 31.
  • onsemi held $3.05 billion in long-term debt as of December 31.
  • Price Action: ON shares traded lower by 2.88% at $76.14 on the last check Friday.

Posted In: NewsOfferingsTechBriefs