Loan & DebtMay 7, 2026, 12:44 AM
ON Semiconductor Prices $1.3B 0% Convertible Senior Notes Due 2031
AI Summary
ON Semiconductor Corporation announced the pricing of a private offering of $1.3 billion aggregate principal amount of 0% Convertible Senior Notes due 2031. The notes feature an initial conversion price of approximately $161.30 per share, representing a 52.5% premium over the common stock's closing price. The company expects net proceeds of about $1,276.4 million, a portion of which will be used to fund convertible note hedge transactions and 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.
Key Highlights
- ON Semiconductor priced $1.3 billion of 0% Convertible Senior Notes due 2031.
- Initial conversion price is approximately $161.30 per share, a 52.5% premium.
- Net proceeds are expected to be approximately $1,276.4 million.
- Approximately $61.2 million will cover convertible note hedge transactions.
- Approximately $331.9 million will repurchase ~3.1 million shares concurrently.
- The notes mature on May 1, 2031, and are senior unsecured obligations.
- Warrant transactions have an initial strike price of $211.54 per share (100% premium).
- Initial purchasers have an option to buy an additional $200 million in notes.