PHOENIX, Ariz. – Oct. 2, 2006 – ON Semiconductor Corporation (Nasdaq: ONNN) today announced that with the company’s cash on hand it has prepaid approximately $60 million of its Senior Secured Credit Facility in addition to its quarterly principal payment of approximately $2 million on the facility. This represents a continuation of ON Semiconductor’s financial strategy to reduce its overall debt levels. Separately, during the third quarter of 2006, in a series of transactions the company also refinanced its loans with two Chinese banks, extending the maturity from 2006 to 2009 for approximately $31 million of this bank debt. The remaining $12 million of Chinese bank debt is due in 2013. In conjunction with these refinancings, the company was able to reduce the overall interest expense associated with its Chinese bank debt by approximately 30 basis points to LIBOR plus 120 basis points.
“Over the last year, we have paid down over $125 million of total debt, consistent with our financial strategy. The steps taken over the past month are further evidence of our intent to continue to reduce our overall debt levels and associated interest expense,” said Donald Colvin, ON Semiconductor executive vice president and CFO.
About ON Semiconductor
With its global logistics network and strong portfolio of power semiconductor devices, ON Semiconductor (Nasdaq: ONNN) is a preferred supplier of power solutions to engineers, purchasing professionals, distributors and contract manufacturers in the computer, cell phone, portable devices, automotive and industrial markets. For more information, please visit ON Semiconductor's website at www.onsemi.com.
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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 the continued repayment of debt, and reduction of interest expense and similar matters. 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, risks and costs associated with increased and new regulation of corporate governance and disclosure standards (including pursuant to Section 404 of the Sarbanes-Oxley Act of 2002), and risks involving environmental or other governmental regulation. Additional factors that could affect the company's future operating results are in Item 1A Risk Factors of our Form 10-K for the year ended December 31, 2005 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.