Loan & DebtMay 6, 2026, 07:37 AM
onsemi Proposes $1.3B Convertible Senior Notes Offering
AI Summary
ON Semiconductor Corporation (onsemi) announced a proposed private offering of $1.3 billion aggregate principal amount of Convertible Senior Notes due 2031. The company also expects to grant initial purchasers an option to buy an additional $200.0 million in notes. Proceeds from the offering will be used to fund convertible note hedge transactions, repurchase up to $400.0 million of common stock concurrently with the pricing, and for general corporate purposes, including debt repayment. The notes will be senior unsecured obligations, maturing on May 1, 2031, and offered privately to qualified institutional buyers.
Key Highlights
- onsemi announced a proposed private offering of $1.3 billion aggregate principal amount of Convertible Senior Notes due 2031.
- Initial purchasers have an option to buy up to an additional $200.0 million aggregate principal amount of notes.
- Net proceeds will be used to pay for convertible note hedge transactions.
- Up to $400.0 million of common stock will be repurchased concurrently with the offering pricing.
- Remaining net proceeds are for general corporate purposes, including repayment of outstanding indebtedness.
- The notes will be senior unsecured obligations, guaranteed by subsidiaries, and mature on May 1, 2031.
- Conversion will be satisfied by paying cash up to the principal amount, and cash/shares for any remainder at onsemi's election.
- The offering is private, targeting qualified institutional buyers under Rule 144A.
Price Impact
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