onsemi $200 million greenshoe brings convertible deal to $1.5 billion

By Mary-Katherine Stinson

Lexington, Ky., March 2 – Initial purchasers of onsemi’s 0.5% convertible senior notes due 2029 exercised their option to purchase up to $200 million total principal amount of additional notes, lifting the issue to $1.5 billion, according to an 8-K filing with the Securities and Exchange Commission.

Before being upsized during pricing, the initial size of the offering was $1.1 billion with a greenshoe of $165 million.

Citigroup Global Markets Inc., BofA Securities Inc., Morgan Stanley & Co. LLC, BMO Capital Markets Corp., BBVA Securities Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, MUFG Securities Americas Inc., SMBC Nikko Securities America Inc. and Barclays were bookrunners for the Rule 144A offering

Proceeds will be used to repay up to $1.086 billion of the outstanding debt under the company’s term loan B facility, approximately $171.5 million of proceeds will be used to cover the cost of the convertible note hedges with any remaining amount to be used for general corporate purposes.

In connection with the offering, the company entered into convertible hedge and warrant transactions with a strike price of $156.78, which represents a premium of 100% over the last reported price of stock, on the warrants.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.