ON Semiconductor Plans to Raise $700 Million Via Private Debt Offering
04:59 AM EDT, 05/11/2021 (MT Newswires) -- ON Semiconductor (ON) on Monday said that it plans to offer $700 million aggregate principal amount of 0% convertible senior notes maturing on May 1, 2027 in a private offering to institutional buyers.
The company also expects to grant to the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $105 million aggregate principal amount of the notes.
The semiconductor supplier said that it plans to use the proceeds from the offering along with available cash to pay the cost of the convertible note hedge transactions, repurchase or exchange a portion of the aggregate principal amount outstanding of the company's existing 1.625% convertible senior notes due 2023, repay a portion of the existing outstanding indebtedness under the company's revolving credit facility, and use the remaining amount for general corporate purposes.
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