PHOENIX, Ariz. – Feb. 19, 2004 – Keith Jackson, ON Semiconductor (Nasdaq: ONNN) president and CEO, will preside over the opening of Nasdaq Market trading at 9:30 a.m. today.
In 2003, ON Semiconductor reduced its overall debt balance for the first time since its IPO as its total debt balance declined from $1.42 billion at the end of 2002 to $1.30 billion at the end of 2003. During this period, the company also reduced its senior secured bank debt balance from $702 million to $320 million and eased some of its financial covenants. At the same time, the company has reduced the interest rate on its senior secured bank debt and replaced a portion of its senior secured bank debt with other fixed-term debt that carried a lower interest rate.
The company recently completed a public offering of its common stock in which it sold 34.4 million shares at a public offering price of $6.98 and, as previously announced, will use the proceeds of the offering to further reduce its debt by approximately $170 million by redeeming a portion of its first and second lien senior secured notes due 2010 and 2008, resulting in expected savings of approximately $22 million in annual interest expense.
ON Semiconductor’s average daily share volume has increased from approximately 122,000 shares traded during January 2003 to approximately 2.5 million shares during January 2004.
“The increase in our share volume reflects the efficiency of the Nasdaq’s fast-paced, highly competitive trading environment,” Jackson said. “Nasdaq provides the investment community with a front-row seat to our progress where we are continuing our work to improve our financial position and to further de-lever the company.”
About ON Semiconductor
ON Semiconductor (Nasdaq: ONNN) offers an extensive portfolio of power and data management semiconductors and standard semiconductor components that address the design needs of today’s sophisticated electronic products, appliances and automobiles. For more information visit ON Semiconductor’s website at https://www.onsemi.com.
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ON Semiconductor and the ON Semiconductor logo are registered trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders. Although the company references its website in this news release, such information on the website is not to be incorporated herein.
This news release includes “forward-looking statements” as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact are statements that could be deemed forward-looking statements and are often characterized by the use of words such as “believes,” “expects,” “estimates,” “projects,” “may,” “will,” “intends,” “plans,” or “anticipates,” or by discussions of strategy, plans or intentions. In this news release, forward-looking information relates to future interest expense and debt levels. All forward-looking statements in this news release are made based on management's current expectations and estimates, which involve risks, uncertainties and other factors that could cause results to differ materially from those expressed in forward-looking statements. Among these factors are changes in overall economic conditions, the cyclical nature of the semiconductor industry, changes in demand for our products, changes in inventories at our customers and distributors, technological and product development risks, availability of raw materials, competitors' actions, pricing and gross margin pressures, loss of key customers, order cancellations or reduced bookings, changes in manufacturing yields, control of costs and expenses, significant litigation, risks associated with acquisitions and dispositions, risks associated with our substantial leverage and restrictive covenants in our debt agreements, risks associated with our international operations, the threat or occurrence of international armed conflict and terrorist activities both in the United States and internationally and risks involving environmental or other governmental regulation. Additional factors that could affect the company's future operating results are described in our Form 10-K for the year ended December 31, 2002 under the caption “Trends, Risks and Uncertainties” in the MD&A section, and other factors are described from time to time in our SEC filings. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information.