ON Semiconductor prices convertible senior notes offering
ON Semiconductor (NASDAQ:ON) announced on Friday the pricing of its private debt offering.
The offering comprises $1.3B aggregate principal amount of 0.50% Convertible Senior Notes due 2029 issued at a 32.5% premium to the closing price of onsemi's common stock on February 23, 2023 of $78.39.
The notes will bear interest at a rate of 0.50% per year, payable semiannually in arrears and will mature on March 1, 2029, unless earlier repurchased, redeemed or converted. 
Initial purchasers have been granted an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $200M of the notes.
The offering was upsized from the previously announced offering size of $1.1B (or $1.265B if the initial purchasers exercise their option to purchase additional notes in full). 
Net proceeds are estimated to be around $1.27B or $1.46B if the initial purchasers exercise their option in full. The proceeds, along with cash on hand, will be used to repay up to $1.08B of the existing outstanding indebtedness under onsemi's Term Loan "B" Facility, to pay ~$148.6M cost of convertible note hedge transaction and for general corporate purposes.

The notes offering and the convertible hedge and warrant transactions are expected to close on February 28, 2023, subject to customary closing conditions.