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Delaware
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001-39317
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36-3840979
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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ON Semiconductor Corporation
5701 N. Pima Road
Scottsdale, Arizona
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85250
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(Address of principal executive offices)
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(Zip Code)
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(602) 244-6600
(Registrant’s telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading
symbol(s)
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Name of each exchange
on which registered
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Common Stock, par value $0.01 per share
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ON
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The Nasdaq Stock Market LLC
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2
of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Item 1.01.
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Entry into a Material Definitive Agreement.
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On May 11, 2026, ON Semiconductor Corporation (the “Company”) completed its
previously announced private unregistered offering of $1.5 billion aggregate principal amount of its 0% Convertible Senior Notes due 2031 (the “Notes”),
which amount includes the full exercise of the initial purchasers’ option to purchase $200 million aggregate principal amount of additional Notes.
Indenture
The Notes were issued under an Indenture, dated as of May 11, 2026 (the “Indenture”),
by and among the Company, the Guarantors (as defined below) and Computershare Trust Company, National Association, as trustee (the “Trustee”). The Indenture
provides, among other things, that the Notes will mature on May 1, 2031, unless earlier repurchased or redeemed by the Company or converted pursuant to their terms. The Notes will not bear regular interest, and the principal amount of the Notes
will not accrete.
The Notes are fully and unconditionally guaranteed, on a joint and several basis, by each of the Company’s U.S. subsidiaries (the “Guarantors”) that is a borrower or guarantor under the Credit Agreement, dated as of June 22, 2023 (as amended, extended, renewed, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”), among the Company, as borrower, the several lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent. In
the future, the Notes will be fully and unconditionally guaranteed by each of the Company’s U.S. subsidiaries that becomes a borrower or guarantees any indebtedness under the Credit Agreement.
The Company received net proceeds from the offering of the Notes of approximately $1,472.9 million, after deducting the initial purchasers’ discounts and after deducting
offering expenses payable by the Company. The Company intends to use a portion of the net proceeds from the offering of the Notes to pay the approximately $70.7 million cost of the Convertible Note Hedges (as defined below) (after such cost is
partially offset by the proceeds to the Company from the sale of the Warrants (as defined below). The Company used approximately $331.9 million of the net proceeds from this offering to repurchase approximately 3.1 million shares of the Company’s
common stock, par value $0.01 per share (the “Common Stock”), concurrently with the pricing of the offering of the Notes in privately negotiated transactions effected with or through one of the initial purchasers or its affiliate. The Company
expects to use the remainder of the net proceeds for general corporate purposes, including the repayment of outstanding indebtedness.
The Company may redeem for cash all or any portion of the Notes, at the Company’s option at any time and from time to time, on or after May 7, 2029 if the last reported
sale price of the Common Stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any consecutive 30 trading-day period (including the last trading day of such period)
ending on, and including, the trading day immediately preceding the date on which the Company provides the related notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid
special interest, if any, to, but excluding, the redemption date. No sinking fund is provided for the Notes.
Prior to the close of business on the business day immediately preceding February 1, 2031, holders of the Notes may convert their Notes at their option only under the
following circumstances: (i) during any calendar quarter commencing after the calendar quarter ending on June 30, 2026 (and only during such calendar quarter), if the last reported sale price of the Common Stock for at least 20 trading days
(whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable
trading day; (ii) during the five consecutive business-day period after any five consecutive trading-day period in which the trading price per $1,000 principal amount of the Notes for each trading day of such period was less than 98% of the product
of the last reported sale price of Common Stock and the conversion rate on each such trading day; (iii) if the Company calls any or all of the Notes for redemption, at any time prior to the close of business on the second scheduled trading day
immediately preceding the redemption date; or (iv) upon the occurrence of specified corporate transactions described in the Indenture. On or after February 1, 2031, until the close of business on the second scheduled trading day immediately
preceding the maturity date, holders of the Notes may convert all or a portion of their Notes at any time.
Upon conversion, the Company will pay cash up to the aggregate principal amount of the Notes to be converted and pay or deliver, as the case may be, cash, shares of
Common Stock or a combination of cash and Common Stock at the Company’s election, in respect of the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the Notes being converted. The initial
conversion rate is 6.1997 shares of Common Stock per $1,000 principal amount of Notes (which is equivalent to an initial conversion price of approximately $161.30 per share). The conversion rate is subject to adjustment upon the occurrence of
certain specified events as set forth in the Indenture. In addition, following certain corporate events that occur prior to the maturity date or if the Company delivers a notice of redemption, the Company will increase, in certain circumstances,
the conversion rate for a holder who elects to convert its Notes in connection with such corporate event or notice of redemption. The maximum number of shares of Common Stock issuable in connection with the conversion of the Notes is 14,181,600,
which is subject to customary anti-dilution adjustment provisions.
Upon the occurrence of a fundamental change (as defined in the Indenture), subject to certain conditions, holders of the Notes may require the Company to repurchase all
or a portion of the Notes for cash at a price equal to 100% of the principal amount of the Notes to be repurchased, plus any accrued and unpaid special interest, if any, to, but excluding, the repurchase date.
The Indenture contains customary events of default. In the event of certain events of bankruptcy, insolvency or reorganization involving the Company or any of its
significant subsidiaries, 100% of the principal of the Notes plus accrued and unpaid special interest, if any, may be declared immediately due and payable, subject to certain
conditions in the Indenture. In the case of any other event of default, the Trustee or the holders of at least 30% in principal amount of the then-outstanding Notes may declare the Notes to be due and payable immediately.
Certain of the initial purchasers of the Notes and their respective affiliates have, from time to time, performed, and may in the future perform, certain commercial
banking, financial advisory, investment banking and other services for the Company and its affiliates in the ordinary course of their business, for which they received or will receive customary fees and commissions.
The foregoing descriptions of the Indenture and the Notes are qualified in their entirety by reference to the full text of the Indenture and the Form of 0% Convertible
Senior Note due 2031, copies of which are filed as Exhibit 4.1 and 4.2, respectively, to this Current Report on Form 8-K (this “Current Report”) and are
incorporated herein by reference.
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Item 2.03.
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Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
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The disclosures set forth in Item 1.01 of this Current Report are incorporated herein by reference.
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Item 3.02.
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Unregistered Sales of Equity Securities.
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The disclosures set forth in Items 1.01 and 8.01 of this Current Report are incorporated herein by reference.
The offer and sale of the Notes and the guarantees to the initial purchasers were made in reliance on the exemption from registration provided by Section 4(a)(2) of the
Securities Act of 1933, as amended (the “Securities Act”), and for resale by the initial purchasers to persons reasonably believed to be qualified
institutional buyers in accordance with Rule 144A under the Securities Act. The Company relied on these exemptions from registration based in part on representations made by the initial purchasers in the purchase agreement pursuant to which the
Company sold the Notes to the initial purchasers.
Any shares of Common Stock issuable upon conversion of the Notes will be issued in transactions anticipated to be exempt from registration under the Securities Act
pursuant to Section 3(a)(9) thereof. The Company does not intend to file a registration statement covering the resale of the Notes, the guarantees by the Guarantors or the shares of Common Stock issuable upon conversion of the Notes, if any.
The Company sold the Warrants described below to the Counterparties (as defined below) in reliance on the exemption from registration provided by Section 4(a)(2) of the
Securities Act. The Company relied on this exemption from registration based in part on representations made by the Counterparties. The Warrants and the shares of the Common Stock issuable upon exercise of the Warrants, if any, have not been
registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. To the extent that any shares of Common Stock are issued upon exercise of the
Warrants by any of the Counterparties pursuant to the respective Warrants, such shares will be issued in transactions anticipated to be exempt from registration under the Securities Act pursuant to Section 3(a)(9) thereof.
Convertible Note Hedge Transactions
In connection with the pricing of the Notes on May 6, 2026, and in connection with the exercise by the initial purchasers of their option to purchase additional Notes on
May 8, 2026, the Company entered into privately negotiated convertible note hedge transactions (collectively, the “Convertible Note Hedges”) with respect to
the Common Stock with certain of the initial purchasers or their affiliates and certain other financial institutions (collectively, the “Counterparties”).
The Convertible Note Hedges cover, subject to customary anti-dilution adjustments, the number of shares of Common Stock that initially underlie the Notes, and are expected to reduce the potential dilution to the Common Stock and/or offset potential
cash payments in excess of the principal amount upon conversion of the Notes.
The Convertible Note Hedges are expected generally to reduce the potential dilution to the Common Stock upon conversion of the Notes and/or offset the potential cash
payments in excess of the principal amount of the converted Notes the Company is required to make in the event that the market price per share of the Common Stock, as measured under the terms of the Convertible Note Hedges, at the time of exercise
is greater than the strike price of the Convertible Note Hedges.
The Convertible Note Hedges are separate transactions entered into by the Company with the Counterparties and are not part of the terms of the Notes. Holders of the Notes
do not have any rights with respect to the Convertible Note Hedges.
A copy of the form of confirmation for the Convertible Note Hedges is filed as Exhibit 10.1 to this Current Report and is incorporated by reference herein. The foregoing
description of the terms of the Convertible Note Hedges does not purport to be complete and is qualified in its entirety by reference to such exhibit.
Warrant Transactions
In addition, in connection with the pricing of the Notes on May 6, 2026, and in connection with the exercise by the initial purchasers of their option to purchase
additional Notes on May 8, 2026, the Company separately entered into privately negotiated warrant transactions with the Counterparties, whereby the Company sold to the Counterparties warrants (collectively, the “Warrants”) to acquire, collectively, subject to anti-dilution adjustments, the same number of shares of Common Stock covered by the Convertible Note Hedges at an initial strike price of
$211.54 per share, which represents a premium of 100.0% over the closing price of the Common Stock of $105.77 per share on May 6, 2026 and is subject to certain adjustments under the terms of the Warrants. The maximum number of shares of Common
Stock issuable in connection with the Warrants is 18,599,106. The proceeds from the sale of the Warrants to the Counterparties will be used to offset the cost of the Convertible Note Hedges. If the market value per share of the Common Stock, as
measured under the Warrants, exceeds the strike price of the Warrants, the Warrants will have a dilutive effect on the Company’s earnings per share. Additionally, if the market value per share of the Common Stock, as measured under the Warrants,
exceeds the strike price of the Warrants during the measurement period at the maturity of such Warrants, the Company will owe the Counterparties a number of shares of the Common Stock in an amount based on the excess of such market price per share
of the Common Stock over the strike price of the Warrants.
The Warrant transactions are separate transactions entered into by the Company with the Counterparties and are not part of the terms of the Notes. Holders of the Notes do
not have any rights with respect to the Warrants. A copy of the form of confirmation for the Warrants is filed as Exhibit 10.2 to this Current Report and is incorporated by reference herein. The foregoing description of the terms of the Warrants
does not purport to be complete and is qualified in its entirety by reference to such exhibit.
Forward-Looking Statements
Certain statements in this Current Report may constitute “forward-looking statements” as that term is defined in Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated in this Current Report could be deemed forward-looking statements. Forward-looking statements
are often characterized by words such as “believes,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “anticipates,” “should,” “could,” “would” or similar expressions, or by discussions of strategy, plans or intentions. All
forward-looking statements in this Current Report are made based on the Company’s current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially
from those expressed in the forward-looking statements. Important factors that could affect our future results or events are described under Part I, Item 1A “Risk Factors” in the Company’s 2025 Annual Report on Form 10-K filed with the Securities
and Exchange Commission on February 9, 2026. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information, except as may be required by law.
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Item 9.01.
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Financial Statements and Exhibits.
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(d) Exhibits.
The following exhibits are filed with this report.
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Exhibit
No.
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Description
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4.1
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Indenture, dated as of May 11, 2026, among ON Semiconductor Corporation, the guarantors party thereto and Computershare Trust Company, National Association, as trustee
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4.2
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Form of 0% Convertible Senior Note due 2031 (included in Exhibit 4.1)
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10.1
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Form of Confirmation for Convertible Note Hedges
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10.2
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Form of Confirmation for Warrants
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104
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Cover Page Interactive Data File (embedded within the Inline XBRL document)
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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ON SEMICONDUCTOR CORPORATION
(Registrant)
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Date: May 11, 2026
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By:
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Thad Trent
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Executive Vice President and Chief Financial Officer
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