ON Semiconductor frees up; Sears flexes lower, firms issue price; Huntsman on deck

By Sara Rosenberg

New York, March 17 – ON Semiconductor Corp.’s credit facility broke for trading during Thursday’s market hours, with the term loan B quoted above its original issue discount.

Moving to the primary market, Sears Holdings Corp. lowered pricing on its incremental term loan and finalized the original issue discount at the tight end of guidance, and Huntsman International LLC joined this week’s calendar with a refinancing transaction.

ON Semiconductor’s credit facility began trading on Thursday, with the $2.2 billion seven-year covenant-light term loan B quoted at 99¼ bid, 99¾ offered, according to a market source.

Pricing on the term loan B is Libor plus 450 basis points with a 0.75% Libor floor, and it was sold at an original issue discount of 98.5. The debt includes 101 soft call protection for one year.

The company’s $2.8 billion credit facility (Ba1) also provides for a $600 million five-year revolver.

During syndication, the term loan B was upsized from $2 billion, the discount was revised from 98, the call protection was extended from six months and the MFN sunset was eliminated so that the debt has 50 bps MFN for life. Also, the revolver was upsized from $400 million.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, BMO Capital Markets, HSBC Securities (USA) Inc. and SMBC are the bookrunners on ON Semiconductor’s credit facility.

Proceeds will be used to fund the acquisition of Fairchild Semiconductor International Inc. for $20.00 per share in an all-cash transaction valued at about $2.4 billion.

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