onsemi plans $1.1 billion offering of six-year convertible notes

By Wendy Van Sickle

Columbus, Ohio, Feb. 22 – onsemi plans to offer $1.1 billion of convertible senior notes due March 1, 2029, according to a news release.

The Rule 144A deal is expected to carry a $165 million greenshoe.

Proceeds are expected to be used to repay up to $1,086,000,000 of the outstanding debt under the company’s term loan B, to pay the cost of convertible note hedge transactions expected to be entered in connection with pricing of the convertibles and for general corporate purposes.

In connection with the offering, onsemi may use cash on hand to repurchase up to $100 million of its common stock from purchasers of the notes in the offering.

onsemi, formerly known as ON Semiconductor Corp., is a Phoenix-based semiconductor company.

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