ON Semiconductor Refinances Portion of Bank Debt
ON Semiconductor Corp. (Phoenix, AZ) announced that it has successfully refinanced approximately $48 million of the term loans under its senior secured bank facility with the proceeds of a new loan provided to the company's joint venture in Leshan, China, by the China Construction Bank. The new loan facility is comprised of two $24 million tranches, one with a 10-year term and one with a three-year term, extendible for an additional three years under certain circumstances.
"As we continue to increase our presence in China, this transaction is an important step in financing our development and investment in this rapidly growing market," said Donald Colvin, ON Semiconductor senior vice president and CFO. "Furthermore, the reduced borrowing rate is expected to save ON Semiconductor approximately $1 million per year in interest costs."