News

ON Semi Announces Common Stock Offering Pricing

February 04, 2004 by Jeff Shepard

ON Semiconductor Corp. (Phoenix, AZ) announced that it has priced a common stock offering of 47 million shares, including 34 million shares offered by the company and 13 million shares offered by a selling stockholder, at a public offering price of $6.98 per share. The net proceeds to ON Semiconductor will be approximately $224 million.

ON Semiconductor will not receive any of the proceeds from the sale of shares by the selling stockholder. The securities will be issued under ON Semiconductor's existing shelf registration statement on file with the Securities and Exchange Commission. The common stock is expected to be issued on Monday, February 9, 2004, subject to customary closing conditions.

ON Semiconductor plans to use a portion of the net proceeds of the offering to redeem a portion of its first-lien, senior-secured notes due 2010 and its second-lien, senior-secured notes due 2008 through the exercise of the "equity-clawback" provisions of the indentures governing the notes. The company intends to use the remaining proceeds for general corporate purposes, which may include additional reductions in its outstanding debt.