ON Semiconductor (ON) closed the refinancing of its secured debt facilities.

Deutsche Bank Securities, Merrill Lynch, HSBC Securities (USA) and BMO Capital Markets acted as joint lead arrangers and joint bookrunners, and BBVA Compass acted as co-manager for the transactions.

The refinancing transaction amended ON’s secured debt facilities documentation in order to, among other things

• Replace and refinance in full its senior secured term loans with a new tranche of refinancing term loans with a 1.25% reduction in the applicable margin,
• Increase the size of its senior secured term loan facility by $200 million to a total aggregate amount of $2.4 billion
• Reduce the applicable margin with respect to the revolving credit facility by 1.25%
• Amend certain provisions to permit the entry by ON’s subsidiaries into secured hedging arrangements with qualified institutions and to facilitate certain restructuring transactions and inter-company intellectual property transfers intended to achieve the efficient integration of ON, its subsidiaries and its acquired entities.

“This refinancing further enables us to generate higher shareholder value from our recently closed acquisition of Fairchild Semiconductor,” said Bernard Gutmann, executive vice president and chief financial officer of ON. “A lower cost of debt not only accelerates our progress towards our financial targets for the acquisition of Fairchild Semiconductor, but also enables faster deleveraging of our balance sheet.”