ON Semiconductor Completes $1.5B Convertible Senior Notes Offering
ON Semiconductor Corporation announced the completion of its previously announced private unregistered offering of $1.5 billion aggregate principal amount of 0% Convertible Senior Notes due 2031. This amount includes the full exercise of the initial purchasers' option for additional notes. The company received net proceeds of approximately $1,472.9 million, a portion of which will be used to pay for Convertible Note Hedges and to repurchase approximately 3.1 million shares of common stock for $331.9 million. The remaining proceeds are designated for general corporate purposes, including debt repayment. The Notes mature on May 1, 2031, and are convertible under specific conditions, with an initial conversion price of approximately $161.30 per share.
Key Highlights
- ON Semiconductor completed a private unregistered offering of $1.5 billion aggregate principal amount of 0% Convertible Senior Notes due 2031.
- The offering included the full exercise of initial purchasers' option to purchase $200 million in additional Notes.
- Net proceeds from the offering were approximately $1,472.9 million after deductions.
- Approximately $70.7 million of proceeds will cover the cost of Convertible Note Hedges.
- The company used $331.9 million to repurchase approximately 3.1 million shares of common stock.
- The Notes mature on May 1, 2031, and do not bear regular interest.
- The initial conversion rate is 6.1997 shares per $1,000 principal amount, equivalent to $161.30 per share.
- The company may redeem Notes on or after May 7, 2029, if stock price conditions are met.