ON Semiconductor Corp. (Phoenix, AZ) announced that it has refinanced approximately $100 million of the term loans under its senior secured bank facility with the net proceeds of an additional term loan. As a result of this transaction and the application of the net proceeds of the company's recent equity offering, ON Semiconductor's bank debt under its senior secured bank facility has been reduced from $521 million to $369 million.
The company now has no principal payments on term loans under its senior secured bank facility prior to August 4, 2006. The additional term loan bears interest at a rate of LIBOR plus 400 basis points. The company also fully repaid and terminated its existing $62.5 million revolving credit facility, of which $37.5 million was drawn, and obtained a new $25 million revolving credit facility that matures on August 4, 2006.
"We continue to focus on improving our capital structure and extending our debt maturities," said Donald Colvin, ON Semiconductor senior vice president and CFO. "These transactions provide us with another opportunity to improve our financial position, and we are encouraged by the positive reception these transactions have had in the market."
