ON Semiconductor (ON) Refinances Secured Debt Facilities

September 30, 2016 11:08 AM EDT

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ON Semiconductor Corporation (Nasdaq: ON) announced that ON Semiconductor has successfully closed the refinancing of its secured debt facilities. The refinancing transaction amended ON Semiconductor’s secured debt facilities documentation in order to, among other things, (i) replace and refinance in full its senior secured term loans with a new tranche of refinancing term loans with a 1.25% reduction in the applicable margin, (ii) increase the size of its senior secured term loan facility by $200 million to a total aggregate amount of $2.4 billion, (iii) reduce the applicable margin with respect to the revolving credit facility by 1.25% and (iv) amend certain provisions to permit the entry by ON Semiconductor’s subsidiaries into secured hedging arrangements with qualified institutions and to facilitate certain restructuring transactions and intercompany intellectual property transfers intended to achieve the efficient integration of ON Semiconductor, its subsidiaries and its acquired entities (collectively, the “Transactions”).

“This refinancing further enables us to generate higher shareholder value from our recently closed acquisition of Fairchild Semiconductor,” said Bernard Gutmann, Executive Vice President and Chief Financial Officer of ON Semiconductor. “A lower cost of debt not only accelerates our progress towards our financial targets for the acquisition of Fairchild Semiconductor, but also enables faster deleveraging of our balance sheet.”

Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, HSBC Securities (USA) Inc. and BMO Capital Markets Corp. acted as Joint Lead Arrangers and Joint Bookrunners, and BBVA Compass acted as co-manager for the Transactions. This announcement is for informational purposes only.

No money, securities or other consideration is being solicited, and, if sent in response to the information contained herein, will not be accepted. Neither this document nor the information contained herein constitutes an offer to sell or the solicitation of an offer to buy any securities or other instruments.



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