ON Semiconductor Prepays Its Senior Secured Credit Facilities
Announced today that it has successfully prepaid and terminated its $169.75 million term loan and terminated its $25.0 million undrawn revolver under its senior secured credit facilities which would have matured in 2013. With the repayment of this facility, the company expects to save annual cash interest expense of approximately $3.4 million based on today's LIBOR."As of the end of the first quarter of 2010, we had approximately $560.7 million of cash and cash equivalents on our balance sheet," said Donald Colvin, ON Semiconductor executive vice president and CFO. "The termination of our senior secured credit facilities provides additional financial and operational flexibility. Early retirement of our senior secured credit facilities highlights our improved financial performance. After this prepayment, we will have the lowest debt position in the company's history as a publicly traded company. We believe the company is in a position to continue generating strong free cash flow and we remain committed to improving the capital structure of the company. We continue to examine opportunities to improve shareholder value."
