ON Semiconductor Corp. (ON) on Thursday said it has priced its private offering of $1.3 billion of 0% Convertible Senior Notes due 2031.
The initial conversion price of the notes is approximately $161.30 per share, representing a 52.5% premium to the company's closing stock price of $105.77 on May 6.
The company expects net proceeds of about $1.276 billion, or approximately $1.473 billion if the initial purchasers fully exercise their option to buy an additional $200 million of notes.
ON Semiconductor said it intends to use part of the proceeds to fund convertible note hedge transactions entered into in connection with the offering, aimed at reducing potential share dilution, and to repurchase about 3.1 million shares for approximately $331.9 million. The remaining proceeds are expected to be used for general corporate purposes, including repayment of outstanding debt.
The company also entered into warrant transactions with an initial strike price of $211.54 per share, representing a 100% premium to the closing share price on May 6, 2026.
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