Loan & DebtMay 6, 2026, 07:21 AM
onsemi to Offer $1.3B Convertible Senior Notes Due 2031
AI Summary
ON Semiconductor Corporation (onsemi) announced its intention to offer $1.3 billion in Convertible Senior Notes due 2031 through a private offering. The company also expects to grant initial purchasers an option to buy an additional $200 million in notes. Concurrently, onsemi plans to repurchase up to $400 million of its common stock. The net proceeds will be used to pay for convertible note hedge transactions, fund the share repurchases, and for general corporate purposes, including repaying outstanding indebtedness.
Key Highlights
- onsemi intends to offer $1.3 billion aggregate principal amount of Convertible Senior Notes due 2031 in a private offering.
- Initial purchasers have an option to buy up to an additional $200 million aggregate principal amount of notes.
- onsemi plans to repurchase up to $400 million of its common stock concurrently with the offering's pricing.
- Net proceeds will fund convertible note hedge transactions, common stock repurchases, and general corporate purposes, including debt repayment.
- The notes will be senior unsecured obligations, guaranteed by subsidiaries, and mature on May 1, 2031.
- onsemi expects to enter into convertible note hedge and warrant transactions to manage potential dilution.