T-3 1 d498383dt3.htm FORM T-3 FORM T-3

As filed with the SEC on March 7, 2013

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM T-3

 

 

FOR APPLICATIONS FOR QUALIFICATION OF INDENTURES

UNDER THE TRUST INDENTURE ACT OF 1939

 

 

ON Semiconductor Corporation

and the co-applicants listed on the following page

(Name of Applicants)

 

 

5005 E. McDowell Road

Phoenix, Arizona 85008

(Address of principal executive offices)

 

 

Securities to be Issued Under the Indenture to be Qualified

 

Title of Class

 

Amount

2.625% Convertible Senior

Subordinated Notes due 2026, Series B

 

Up to a maximum aggregate principal

amount of $60 million*

 

 

Approximate date of proposed public offering

As promptly as practicable

after the effective date of this

Application for Qualification

 

 

Name and address of agent for service:

George H. Cave, Esq.

Senior Vice President, General Counsel, Chief Compliance & Ethics Officer and Corporate Secretary

ON Semiconductor Corporation

5005 E. McDowell Road

Phoenix, Arizona 85008

(602) 244-5226

 

 

With A Copy To:

Cheryl Ikegami, Esq.

Snell & Wilmer L.L.P.

One Arizona Center

400 E. Van Buren

Phoenix, Arizona 85004

(602) 382-6395

 

 

The Company hereby amends this application for qualification on such date or dates as may be necessary to delay its effectiveness until (i) the 20th day after the filing of an amendment which specifically states that it shall supersede this Application for Qualification or (ii) such earlier date as the SEC, acting pursuant to Section 307(c) of the Trust Indenture Act of 1939, may determine upon the written request of the Company.

 

* Approximately $200 million aggregate principal amount of 2.625% Convertible Senior Subordinated Notes due 2026, Series B (the “Series B Notes”) were issued in December 2011 pursuant to an Indenture dated as of December 15, 2011, among ON Semiconductor Corporation (the “Company”), the Subsidiary Guarantors named therein, and Deutsche Bank Trust Company Americas, as trustee (the “Indenture”), which was qualified under the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”), pursuant to a filing on Form T-3 made on December 2, 2011 and declared effective by the Securities and Exchange Commission (“SEC”) on December 13, 2011. Pursuant to their terms, the Series B Notes were reopened to allow for the issuance of up to an additional $100 million aggregate principal amount of Series B Notes in September 2012. In connection with such issuance, the Company made a second filing with respect to the Indenture on Form T-3 on August 21, 2012, which was declared effective on August 30, 2012. The Series B Notes are again being reopened to allow for the issuance of up to $60 million aggregate principal amount of additional Series B Notes that may be exchanged as described in Item 2, and may be reopened further in the future to allow for the issuance of additional Series B Notes without limitation in amount upon the satisfaction of certain conditions.

 

 

 


The following direct and indirect subsidiaries of the Company are guarantors of the Series B Notes (the “Subsidiary Guarantors”) and are co-applicants on this Form T-3.

 

Name of Co-Applicant

Semiconductor Components Industries, LLC
SCG (Malaysia SMP) Holding Corporation
SCG (Czech) Holding Corporation
SCG (China) Holding Corporation

Semiconductor Components Industries

Puerto Rico, Inc.

Semiconductor Components Industries of Rhode Island, Inc.
SCG International Development LLC
Semiconductor Components Industries International of Rhode Island, Inc.

 

2


INTRODUCTION AND BACKGROUND

The Indenture was originally qualified pursuant to a filing on Form T-3 made on December 2, 2011 and declared effective by the SEC on December 13, 2011 to allow for the issuance in December 2011 of approximately $200 million aggregate principal amount of the Series B Notes. Pursuant to their terms, the Series B Notes were reopened to allow for the issuance of up to an additional $100 million aggregate principal amount of Series B Notes in September 2012. In connection with such issuance, the Company made a second filing with respect to the Indenture on Form T-3 on August 21, 2012, which was declared effective on August 30, 2012. The current filing is made in connection with the reopening of the Indenture pursuant to its terms to allow the issuance of up to an additional $60 million of Series B Notes in new exchange transactions described in Item 2 below. The additional Series B Notes contemplated to be issued will have the same terms, CUSIP number and other provisions as the Series B Notes that were originally issued in December 2011 and will be fungible with such notes for U.S. federal income tax purposes. The Indenture also allows for the issuance of additional Series B Notes that meet those conditions in the future in an unlimited principal amount.

GENERAL

 

1. General Information.

The form of organization of and the state or other sovereign power under the laws of which each applicant is organized are as follows:

 

    

Jurisdiction of
Incorporation or

Organization

     Form of Organization

Name of Co-Applicant

       

ON Semiconductor Corporation

   Delaware      Corporation

Semiconductor Components Industries, LLC

   Delaware      Limited Liability
Company

SCG (Malaysia SMP) Holding Corporation

   Delaware      Corporation

SCG (Czech) Holding Corporation

   Delaware      Corporation

SCG (China) Holding Corporation

   Delaware      Corporation

Semiconductor Components Industries Puerto Rico, Inc.

   Delaware      Corporation

Semiconductor Components Industries of Rhode Island, Inc.

   Rhode Island      Corporation

SCG International Development LLC

   Delaware      Limited Liability
Company

Semiconductor Components Industries International of Rhode Island, Inc.

   Rhode Island      Corporation

 

2. Securities Act exemption applicable.

The Company may issue up to $60 million of its 2.625% Convertible Senior Subordinated Notes due 2026, Series B (the “New Notes”) in one or more exchange transactions (collectively, the “Exchanges”) with certain holders (the “Holders”) of its outstanding 2.625% Convertible Senior Subordinated Notes due 2026 (the “Existing Notes”). The Existing Notes are guaranteed by certain of the subsidiaries of the Company, each of which will also guarantee the New Notes. If the Exchanges are completed, the New Notes will be issued under the Indenture to be qualified under this Application for Qualification of Indenture on Form T-3 (the “Application”). No Exchanges of Existing Notes will be accepted and no New Notes will be issued before the Indenture has been qualified pursuant to this Application.

As the New Notes are proposed to be offered for exchange by the Company and the Subsidiary Guarantors with their existing noteholders exclusively and solely for outstanding Existing Notes of the Company and the Subsidiary Guarantors, the transaction is exempt from registration under the Securities Act of 1933, as amended, pursuant to the provisions of Section 3(a)(9) thereof and Rule 150 promulgated thereunder. No sales of securities of the same class as the New Notes have been or are to be made by the Company or the Subsidiary Guarantors or by or through an underwriter at or about the same time as the Exchanges. No commission or other remuneration has been or will be

 

3


paid by the Company or the Subsidiary Guarantors, directly or indirectly, for soliciting exchanges pursuant to the Exchanges, and no consideration has been, or is to be given, directly or indirectly, by the Company or the Subsidiary Guarantors to any person in connection with the transaction, except for customary fees and expenses of its legal advisors, customary fees and expenses paid to the trustee under the Indenture to be qualified, customary fees and expenses paid to an exchange agent for the transaction, and customary expenses to Deutsche Bank Securities Inc. (“Financial Advisor”) for financial advisory related expenses in connection with the Exchanges. The Financial Advisor will assist with the analysis, structuring and effecting of the Exchanges but will not solicit any noteholder or make any recommendation to any noteholder in connection with the Exchanges. There is no fee payable to the Financial Advisor that depends on the closing of the Exchanges or the amount of any securities to be exchanged. No holder of the outstanding securities has made or will be requested to make any cash payment to the Company or the Subsidiary Guarantors in connection with the Exchanges. Regular employees of the Company, who will not receive additional compensation, may provide information concerning the Exchanges.

AFFILIATIONS

 

3. Affiliates.

 

  (a) Set forth below is a list of all direct and indirect subsidiaries of the Company and the Subsidiary Guarantors, as of the date of this filing:

 

Subsidiary

  

Owned By:

  

% Held

 

Semiconductor Components Industries, LLC

  

ON Semiconductor Corporation

     100   

SCG (China) Holding Corporation

  

ON Semiconductor Corporation

     100   

SCG (Czech) Holding Corporation

  

ON Semiconductor Corporation

     100   

SCG (Malaysia SMP) Holding Corporation

  

ON Semiconductor Corporation

     100   

Semiconductor Components Industries Puerto Rico, Inc.

  

Semiconductor Components Industries, LLC

     100   

AMI Acquisition, LLC

  

Semiconductor Components Industries, LLC

     100   

AMIS Foreign Holdings, Inc.

  

Semiconductor Components Industries, LLC

     100   

Semiconductor Components Industries of Rhode Island, Inc.

  

Semiconductor Components Industries, LLC

     100   

SCG International Development LLC

  

Semiconductor Components Industries, LLC

     100   

ON Semiconductor Canada Holding Corporation

  

Semiconductor Components Industries, LLC

     100   

SANYO Semiconductor Co., Ltd.

  

Semiconductor Components Industries, LLC

     100   

ON Semiconductor Slovakia a.s.

  

Semiconductor Components Industries, LLC

     100   

ON Semiconductor Holdings Malaysia Sdn. Bhd.

  

Semiconductor Components Industries, LLC (SCG International Development, LLC holds a less than 1% interest)

     100   

ON Semiconductor Technology Japan Limited

  

Semiconductor Components Industries, LLC

     100   

ON Semiconductor Japan Ltd.

  

Semiconductor Components Industries, LLC

     100   

ON Semiconductor Design (Shanghai) Limited

  

Semiconductor Components Industries, LLC

     100   

SCG Asia Capital Pte. Ltd.

  

Semiconductor Components Industries, LLC

     100   

SCG Czech Design Center s.r.o.

  

Semiconductor Components Industries, LLC

     100   

 

4


Subsidiary

  

Owned By:

  

% Held

 

ON Semiconductor Hong Kong Design Limited

  

Semiconductor Components Industries, LLC (SCG International Development, LLC holds a less than 1% interest)

     100   

ON Semiconductor Technology Hong Kong Limited

  

Semiconductor Components Industries, LLC

     100   

AMI Semiconductor GmbH

  

Semiconductor Components Industries, LLC

     100   

ON Semiconductor Philippines, Inc.

  

Semiconductor Components Industries, LLC

     100   

ON Semiconductor Trading Ltd.

  

ON Semiconductor Benelux B.V.

     100   

ON Semiconductor Ireland Research and Design Limited

  

Semiconductor Components Industries, LLC

     100   

ON Semiconductor Romania SRL

  

Semiconductor Components Industries, LLC

     100   

ON Semiconductor (Thailand) Co. Ltd.

  

Semiconductor Components Industries, LLC

     100   

Leshan-Phoenix Semiconductor Company Limited

  

SCG (China) Holding Corporation

     70   

Semiconductor Components Industries International of Rhode Island, Inc.

  

Semiconductor Components Industries of Rhode Island, Inc.

     100   

AMI Semiconductor Canada Company

  

AMIS Foreign Holdings, Inc.

     100   

ON Semiconductor Technology Korea Limited

  

AMIS Foreign Holdings, Inc.

     100   

Sound Design Technologies Ltd.

  

ON Semiconductor Canada Holding Corporation

     100   

SANYO Semiconductor Manufacturing Co., Ltd.

  

SANYO Semiconductor Co. Ltd.

     100   

SANYO Semicon Device Co., Ltd.

  

SANYO Semiconductor Co. Ltd.

     100   

SANYO Semiconductor Manufacturing Philippines Corporation

  

SANYO Semiconductor Co. Ltd.

     100   

SANYO Semiconductor (H.K.) Co., Ltd.

  

SANYO Semiconductor Co. Ltd.

     100   

SANYO Electronic Device Sales (HK) Limited

  

SANYO Semiconductor Co. Ltd.

     100   

SANYO Semiconductor (S) Pte. Ltd.

  

SANYO Semiconductor Co. Ltd.

     100   

Kanto SANYO Semiconductor Co., Ltd.

  

SANYO Semiconductor Co. Ltd.

 

SANYO Semiconductor Manufacturing Co., Ltd.

    

 

 

95.11

 

4.89

  

 

  

ON Semiconductor SSL (Shenzhen Nanshan Limited)

  

SANYO Semiconductor Co. Ltd.

 

Kanto SANYO Semiconductor Co., Ltd.

    

 

 

25.95

 

74.05

  

 

  

SANYO Semiconductor (Thailand) Co., Ltd.

  

SANYO Semiconductor Co. Ltd.

 

Kanto SANYO Semiconductor Co., Ltd.

    

 

 

65.60

 

34.40

  

 

  

SANYO Semiconductor (Vietnam) Co., Ltd.

  

SANYO Semiconductor Co. Ltd.

 

Kanto SANYO Semiconductor Co., Ltd.

    

 

 

48.28

 

51.72

  

 

  

ON Semiconductor Vietnam Co. Ltd.

  

SANYO Semiconductor Co. Ltd.

     100   

 

5


Subsidiary

  

Owned By:

  

% Held

 

SANYO LSI Technology India Private Limited

  

SANYO Semiconductor Co. Ltd.

 

SANYO Semiconductor (S) Pte. Ltd.

    

 

 

80

 

20

  

 

  

SANYO Semiconductor Taipei Co., Ltd.

  

SANYO Semiconductor (H.K.) Co., Ltd.

     100   

ON Semiconductor Limited

  

ON Semiconductor Trading Ltd.

     100   

Semiconductor Components Industries Singapore Pte Ltd

  

ON Semiconductor Trading Ltd. (ON Semiconductor Limited holds a less than 1% interest)

     100   

SCG Hong Kong SAR Limited

  

ON Semiconductor Trading Ltd. (ON Semiconductor Limited holds a less than 1% interest)

     100   

ON Electronics Private Limited

  

ON Semiconductor Trading Ltd. (ON Semiconductor Limited holds a less than 1% interest)

     100   

PulseCore Semiconductor Corporation

  

ON Semiconductor Trading Ltd.

     100   

ON Semiconductor Technology India Private Limited

  

ON Semiconductor Trading Ltd.

     100   

ON Semiconductor Trading (Shanghai) Limited

  

SCG Hong Kong SAR Limited

     100   

ON Semiconductor (Shenzhen) Limited

  

SCG Hong Kong SAR Limited

     100   

ON Semiconductor Germany GmbH

  

ON Semiconductor Limited

     100   

ON Semiconductor France SAS

  

ON Semiconductor Limited

     100   

ON Semiconductor Italy S.r.l.

  

ON Semiconductor Limited (ON Semiconductor France SAS holds a less than 1% interest)

     100   

ON Semiconductor Canada Trading Corporation

  

ON Semiconductor Limited

     100   

SCG Korea Limited

  

ON Semiconductor Limited

     100   

ON Semiconductor SAS

  

ON Semiconductor Limited

     100   

ON Semiconductor Netherlands BV

  

ON Semiconductor Limited

     100   

ON Semiconductor Belgium BVBA

  

ON Semiconductor Netherlands BV (ON Semiconductor Trading Ltd. holds a less than 1% interest)

     100   

ON Design Czech s.r.o.

  

ON Semiconductor Netherlands BV (ON Semiconductor Belgium BVBA holds a less than 1% interest)

     100   

ON Semiconductor Switzerland SA

  

ON Semiconductor Netherlands BV

     100   

ON Semiconductor Leasing BVBA

  

ON Semiconductor Belgium BVBA (ON Semiconductor Netherlands BV holds a less than 1% interest)

     100   

ON Semiconductor Czech Republic, s.r.o., legal successor

  

SCG Czech Design Center s.r.o.

 

ON Semiconductor Trading Ltd.

    

 

 

95

 

5

  

 

  

ON Semiconductor Malaysia Sdn. Bhd.

  

ON Semiconductor Holdings Malaysia Sdn. Bhd.

     100   

 

6


Subsidiary

  

Owned By:

  

% Held

 

ON Management C.V.

  

Semiconductor Components Industries, LLC

 

SCG International Development, LLC

    

 

 

99

 

1

  

 

  

ON Semiconductor Holland B.V.

  

ON Management C.V.

     100   

ON Semiconductor Benelux B.V.

  

ON Semiconductor Holland B.V.

     100   

 

  (b) See Item 4 for “Directors and Executive Officers” of the Company and the Subsidiary Guarantors.

 

  (c) See Item 5 for “Principal Owners of Voting Securities” of the Company and the Subsidiary Guarantors as of the date hereof.

MANAGEMENT AND CONTROL

 

4. Directors and Executive Officers.

The executive officers and directors of the Company are:

 

Keith D. Jackson      President, Chief Executive Officer and Director
J. Daniel McCranie      Chairman of the Board of Directors and Director
Curtis J. Crawford, Ph.D.      Director
Emmanuel T. Hernandez      Director
Phillip D. Hester      Director
Atsushi Abe      Director
Daryl A. Ostrander      Director
Teresa M. Ressel      Director
Bernard L. Han      Director
Judith A. Boyle      Vice President, Assistant General Counsel and Assistant Secretary
George H. Cave      Senior Vice President, General Counsel, Chief Compliance & Ethics Officer and Corporate Secretary
Bernard Gutmann      Executive Vice President, Chief Financial Officer and Treasurer
William M. Hall      Senior Vice President and General Manager, Standard Products Group
Robert A. Klosterboer      Senior Vice President and General Manager, Application Products Group
Robert Charles Mahoney      Executive Vice President, Sales and Marketing
Mamoon Rashid      Senior Vice President and General Manager, SANYO Semiconductor Group

The Executive Officers of Semiconductor Components Industries, LLC are:

 

Jim Alvernaz    Vice President, Automotive Products Division
Judith A. Boyle    Vice President, Assistant General Counsel and Assistant Secretary
Debbie Brogan    Vice President, Business & IT Integration Programs
Andrew Broom    Vice President, TDE/PYE
Ryan Cameron    Vice President and General Manager of Custom Industrial and Timing Products

 

7


Frank Carney    Vice President, Assembly Support and Packaging Development
George H. Cave    Senior Vice President, General Counsel, Chief Compliance and Ethics Officer and Secretary
Roy Chia    Regional Vice President of Sales for Greater China
David Chow    Senior Vice President, Asia Pacific Sales
Tobin Cookman    Senior Vice President, Human Resources and Assistant Compliance and Ethics Officer
Enrico Corti    Vice President, Marketing & Sales
Yolande DeBusschop    Vice President, European General Counsel, Law Department
Keenan Evans    Senior Vice President, Quality, Reliability, Environmental Health Services, and Chief Environmental Officer
Mark Goranson    Senior Vice President, Operations
Bernard Gutmann    Executive Vice President, Chief Financial Officer and Treasurer
William M. Hall    Senior Vice President and General Manager, Standard Products Group (SPG)
Kevin Haskew    Senior Vice President and Chief Information Officer
Daryl Hatano    Vice President, Government and External Affairs and Assistant Compliance and Ethics Officer
Vince Hopkin    Vice President, Military, Digital, Foundry, and Image Sensor Division (MDFI)
Keith Jackson    President and Chief Executive Officer
Eric Joseph    Vice President, IC Design
Simon Keeton    Vice President and General Manager , Integrated Circuits Division
Robert Klosterboer    Senior Vice President and General Manager, Application Products Group
Paul Leonard    Vice President and General Manager, Power FET Division
Robert Charles Mahoney    Executive Vice President, Sales & Marketing
M.K. Mak    Regional Vice President of Sales for South Asia and Korea
Kelly Neagle    Vice President, Financial Planning and Analysis, and Business Unit Finance
Mamoon Rashid    Senior Vice President and General Manager, SANYO Semiconductor Group
Paul Rolls    Senior Vice President of Sales Operations
Tony Roybal    Vice President, North America Sales
Bill Schromm    Senior Vice President and General Manager, Operating Systems and Technology Group
David Somo    Vice President of Corporate Marketing
Chuck Spinner    Vice President, Wafer Process Development
Hans Stork    Senior Vice President and Chief Technology Officer
Gary Straker    Vice President and General Manager of SPG Protection Division
Jeff Thomson    Vice President, Channel Sales
Robert Tong    Vice President, Medical Division
Gelu Voicu    Vice President, Memory and Configurable Analog Products business Unit
Brent Wilson    Vice President, Global Supply Chain Organization and External Manufacturing

 

8


The executive officers and directors of each of the Subsidiary Guarantors are:

 

Name of Co-Applicant

  

Directors

  

Executive Officers/ Managers

SCG (Malaysia SMP) Holding Corporation   

George H. Cave

Judith A. Boyle

Keith Jackson

  

George H. Cave, Secretary

Bernard Gutmann, CFO,
Sr. V.P & Treasurer

Keith Jackson, President

SCG (Czech) Holding Corporation   

George H. Cave

Judith A. Boyle

Keith Jackson

  

George H. Cave, Secretary

Bernard Gutmann, CFO,
Sr. V.P & Treasurer

Keith Jackson, President

SCG (China) Holding Corporation   

George H. Cave

Judith A. Boyle

Keith Jackson

  

George H. Cave, Secretary

Bernard Gutmann, CFO,
Sr. V.P & Treasurer

Keith Jackson, President

Semiconductor Components Industries

Puerto Rico, Inc.

  

George H. Cave

Judith A. Boyle

Keith Jackson

  

George H. Cave, Secretary

Bernard Gutmann, CFO,
Sr. V.P & Treasurer

Keith Jackson, President

Semiconductor Components Industries of Rhode Island, Inc.   

Judith A. Boyle

George H. Cave

  

Judith A. Boyle, Secretary

George H. Cave, Vice President

Bernard Gutmann, CFO,
Sr. V.P & Treasurer

Keith Jackson, CEO & President

SCG International Development LLC    N/A   

George H. Cave, Secretary

Bernard Gutmann, CFO,
Sr. V.P & Treasurer

Keith Jackson, President

Semiconductor Components Industries International of Rhode Island, Inc.   

Judith A. Boyle

George H. Cave

  

Judith A. Boyle, Secretary

George H. Cave, Vice President

Bernard Gutmann, CFO,
Sr. V.P & Treasurer

Keith Jackson, CEO & President

The business address and telephone number for each of the above directors and executive officers/managers is c/o ON Semiconductor Corporation, 5005 E. McDowell Road, Phoenix, Arizona 85008, (602) 244-6600.

 

5. Principal owners of voting securities.

Ownership of the voting securities of the Subsidiary Guarantors is described in Item 3(a) above. To the knowledge of the Company, no person owns 10% or more of the voting securities of the Company as of March 4, 2013.

 

9


UNDERWRITERS

 

6. Underwriters.

 

  (a) No person within the last three years prior to the date of filing this Application has acted as an underwriter of any securities of the Company or the Subsidiary Guarantors which were outstanding on the date of filing this Application.

 

  (b) No person is acting or proposes to act as an underwriter with respect to the New Notes proposed to be offered in the Exchange Offer.

CAPITAL SECURITIES

 

7. Capitalization.

 

  (a) The following table sets forth information with respect to each authorized class of securities of the Company as of the date of this application:

 

  (i)

Debt Securities(1):

 

Title of Class   Amount Authorized(2)     Amount Outstanding(2)  

2.625% Convertible Senior Subordinated Notes due 2026

  U.S.$ 484 million      U.S.$ 132.6 million   

2.625% Convertible Senior Subordinated Notes due 2026, Series B

  U.S.$ 298.4  million (3)    U.S.$ 298.4 million   

 

(1) Each of these securities is guaranteed by the same Subsidiary Guarantors as for the New Notes.
(2) Calculated based on the par value of the securities.
(3) Subject to reopening of the Indenture as described in this Application.

 

10


  (ii) Equity Securities:

 

Issuer and Title of Class    Amount
Authorized
    Amount Outstanding  

ON Semiconductor Corporation

    

Common Stock, par value $0.01

     750,000,000        449,757,684 (4) 

Preferred Stock, par value $0.01(4) As of March 4, 2013

     100,000        0   

Semiconductor Components Industries, LLC

    

LLC Interests

     100     100

SCG (Malaysia SMP) Holding Corporation, common stock, par value $0.01

     1,000        1,000   

SCG (Czech) Holding Corporation, common stock, par value $0.01

     1,000        1,000   

SCG (China) Holding Corporation, common stock, par value $0.01

     1,000        1,000   

Semiconductor Components Industries Puerto Rico, Inc. common stock, par value $0.01

     1,000        1,000   

Semiconductor Components Industries of Rhode Island, Inc. common stock, par value $0.01

     250,000        160,190   

SCG International Development LLC

     100     100

Semiconductor Components Industries International of Rhode Island, Inc. common stock, par value $1.00

     8,000        100   

 

  (b) Voting Rights.

Except as provided in the certificate of designation for each series of preferred stock of the Company or bylaw, the common stock will have the exclusive right to vote for the election of directors with each share of common stock being entitled to one vote on all matters submitted to a vote of stockholders. Limited liability company interests are voted by the sole members.

INDENTURE SECURITIES

 

8. Analysis of indenture provisions.

The following is a general description of certain provisions of the Indenture, a form of which is filed as Exhibit T3S hereto. The description is qualified in its entirety by reference to the Indenture. Unless otherwise noted, capitalized terms used below and not defined herein have the meanings given to such terms in the Indenture. Section references are to sections of the Indenture.

 

  A. Events or Default; Notice and Waiver

The following will be events of default under the Indenture [Section 7.01]:

 

  (1) the failure by the Company or any New Note guarantor to pay interest on the New Notes and such default continues for a period of 30 days;

 

  (2) the failure by the Company or any New Note guarantor to pay principal when due upon maturity, redemption, repurchase or otherwise on the New Notes;

 

  (3) the failure by the Company to provide timely notice of a designated event;

 

  (4) the failure of the Company or any New Note guarantor to comply with its obligations under the covenant relating to the addition of future New Note guarantors and incurrence of additional indebtedness and such failure continues for 30 days after notice specified in the Indenture;

 

11


  (5) the failure by the Company or any New Note guarantor to comply with its obligations under the covenants relating to consolidation, merger, sale, conveyance and lease;

 

  (6) the failure of the Company or any New Note guarantor to comply with any of its agreements in the New Notes or the Indenture except as described above and such failure continues for 60 days after notice specified in the Indenture;

 

  (7) the failure by the Company to deliver the consideration payable upon conversion of the New Notes within the time period required by the Indenture, and such failure continues for a period of 5 days after notice specified in the Indenture;

 

  (8) the failure by the Company or any Restricted Subsidiary to pay any Indebtedness within the applicable grace period after final maturity or the acceleration of any such Indebtedness by the holders thereof because of a default and the total amount of such Indebtedness unpaid or accelerated exceeds $25 million or its foreign currency equivalent and such failure continues for 10 days after notice specified in the Indenture;

 

  (9) certain events involving the bankruptcy, insolvency or reorganization of the Company or any Significant Subsidiary under any bankruptcy law;

 

  (10) a court of competent jurisdiction enters an order or decree under any bankruptcy law that:

 

  (a) is for relief against the Company or any Significant Subsidiary in an involuntary case;

 

  (b) appoints a Custodian of the Company or any Significant Subsidiary or for any substantial part of its property; or

 

  (c) orders the winding up or liquidation of the Company or any Significant Subsidiary;

 

  (11) with respect to any judgment or decree for the payment of money in excess of $25 million or its foreign currency equivalent against the Company or any Restricted Subsidiary:

 

  (a) the commencement of an enforcement proceeding thereon by any creditor if such judgment or decree is final and nonappealable and the failure by the Company or such Restricted Subsidiary, as applicable, to stay such proceeding within 10 days thereafter; or

 

  (b) the failure of the Company or such Restricted Subsidiary, as applicable, to pay such judgment or decree, which judgment or decree has remained outstanding for a period of 60 days following entry of such judgment or decree without being paid, discharged, waived or stayed; and

 

  (12) any New Note guarantee of any Significant Subsidiary ceases to be in full force and effect (except as contemplated by the terms thereof) or any Significant Subsidiary that is a New Note guarantor or person acting by or on behalf of such Significant Subsidiary denies or disaffirms such Significant Subsidiary’s obligations under the Indenture or any New Note guarantee and such default continues for 10 days after receipt of the notice specified in the Indenture.

The Trustee may withhold notice to the holders of the New Notes of any default, except defaults in payment of principal or interest on the New Notes, if a trust committee of directors or responsible officers of the Trustee in good faith determines it to be in the interest of the holders of the New Notes to withhold this notice. [Section 7.08]

If an event of default occurs and continues, the Trustee or the holders of at least 25% in principal amount of the outstanding New Notes may declare 100% of the principal and accrued and unpaid interest on the outstanding New Notes to be immediately due and payable. In case of certain events of bankruptcy or insolvency involving the Company or any Significant Subsidiary, the principal on the New Notes will automatically become due and payable. However, if we cure all defaults, except the nonpayment of principal that became due as a result of the acceleration, and meet certain other conditions, this declaration may be cancelled and the holders of a majority of the principal amount of outstanding New Notes may waive these past defaults. [Section 7.01]

 

12


Payments of principal and accrued and unpaid interest on the New Notes that are not made when due will accrue interest at an annual rate of 1% per annum above the otherwise applicable interest rate from the required payment date of such overdue payment. [Section 5.01]

The holders of a majority of outstanding New Notes will have the right to direct the time, method and place of any proceedings for any remedy available to the Trustee, subject to limitations specified in the Indenture. [Section 7.07]

No holder of the New Notes may pursue any remedy under the Indenture, except in the case of a default in the payment of principal on the New Notes, unless:

 

   

the holder has given the Trustee written notice of an event of default and its continuance;

 

   

the holders of at least 25% in principal amount of outstanding New Notes make a written request, and offer reasonable indemnity, to the Trustee to pursue the remedy;

 

   

the Trustee does not receive an inconsistent direction from the holders of a majority in principal amount of the New Notes; and

 

   

the Trustee fails to comply with the request within 60 days after receipt of the request and offer of indemnity. [Section 7.04]

 

  B. Authentication and Delivery of New Notes; Use of Proceeds

The Chief Executive Officer, Chief Financial Officer, President or any Vice President of the Company may sign the New Notes for the Company by manual or facsimile signature attested by the manual or facsimile signature of the Secretary or an Assistant Secretary, or the Treasurer or any Assistant Treasurer of the Company. [Section 2.04]

A New Note will not be valid until an authorized signatory of the Trustee (or an authenticating agent appointed by the Trustee as provided in the Indenture) manually signs the certificate of authentication on the New Note. The signature shall be conclusive evidence that the New Note has been authenticated under the Indenture and that the holder is entitled to the benefits of the Indenture. [Section 2.04]

The Trustee shall act as the initial authenticating agent. Thereafter, the Trustee may appoint an authenticating agent to authenticate notes issued under the Indenture. An authenticating agent may authenticate New Notes whenever the Trustee may do so. Each reference in the Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent shall have many of the same rights as the Trustee to deal with the Company or an Affiliate of the Company. [Section 19.14]

The New Notes will be issued in registered form without coupons in denominations of $1,000 principal amount and integral multiples thereof. All of the New Notes will initially be represented by one or more notes in global form. [Section 2.03, Section 2.02]

The Trustee initially authenticated and delivered New Notes under the Indenture in an aggregate principal amount of $198,552,000 in December of 2011 (the “December 2011 Series B Notes”). In September of 2012, the Trustee authorized and delivered New Notes under the Indenture in an aggregate principal amount of $99,878,000. The Indenture allows additional New Notes to be issued in an unlimited principal amount with the same terms, CUSIP number and other provisions as the December 2011 Series B Notes and that are fungible with the December 2011 Series B Notes for U.S. federal income tax purposes.

There will be no proceeds from the issuance of the New Notes because the New Notes are being issued in exchange for the Old Notes.

 

13


  C. Release and Substitution of Property Subject to the Lien of the Indenture

The New Notes are unsecured obligations of the Company. As such, the New Notes are not secured by any lien on any property.

 

  D. Satisfaction and Discharge of the Indenture

The Indenture shall cease to be of further effect except as expressly provided in the Indenture and the Trustee, on written demand of the Company accompanied by an Officers’ Certificate and an Opinion of Counsel and at the cost and expense of the Company, shall execute proper instruments acknowledging satisfaction of and discharging the Indenture when:

 

  (a) the Company delivers to the Trustee for cancellation all authenticated Notes (other than any New Notes that shall have been destroyed, lost or stolen and in lieu of or in substitution for which other New Notes shall have been authenticated and delivered) not previously cancelled, or

 

  (b) all the New Notes not previously cancelled have become due and payable (or are by their terms to become due and payable within one year or are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption) and the Company has deposited with the Trustee, in trust, funds or U.S. Government Obligations sufficient to pay at maturity or upon redemption all of the New Notes (other than any New Notes that shall have been mutilated, destroyed, lost or stolen and in lieu of or in substitution for which other New Notes shall have been authenticated and delivered) not theretofore canceled or delivered to the Trustee for cancellation, including principal and accrued interest due or to become due to such date of maturity or redemption date, as the case may be, and if the Company pays or causes to be paid all other sums payable by the Company. [Article 13]

 

  E. Evidence as to Compliance

The Company will annually deliver an officers’ certificate to the Trustee with respect to any default under the Indenture that occurred during the prior year. [Section 5.06] The Company must notify the Trustee of any event of default promptly upon becoming aware thereof and of certain specified defaults within 30 days of the occurrence thereof. [Section 7.01]

Upon request to the Trustee to take any action under any provision of the Indenture, the Company will generally be required to furnish an officers’ certificate and opinion of counsel as to satisfaction of all conditions precedent to such action provided for in the Indenture. [Section 19.08]

 

9. Other obligors.

No person other than the Company and the Subsidiary Guarantors is an obligor on the New Notes.

Contents of application for qualification.

This application for qualification comprises:

 

  (a) Pages numbered one to 19, consecutively.

 

  (b) The statement of eligibility and qualification on Form T-1 of Deutsche Bank Trust Company Americas, as Trustee under the Indenture to be qualified (included as Exhibit T3U).

 

  (c) The following exhibits in addition to those filed as a part of the statement of eligibility and qualification of the Trustee:

 

  (i) Exhibit T3A. – Amended and Restated Certificate of Incorporation of ON Semiconductor Corporation, as further amended through March 26, 2008 (incorporated by reference from Exhibit 3.1 to the Company’s First Quarter 2008 Form 10-Q filed with the SEC on May 7, 2008).

 

14


  (ii) Exhibit T3B. – Amended and Restated Bylaws of ON Semiconductor Corporation (incorporated by reference from Exhibit 3.2 to the Company’s annual report on Form 10-K filed with the SEC on February 22, 2012).

 

  (iii) Exhibit T3C. – Certificate of Formation of Semiconductor Components Industries, LLC (incorporated by reference from Exhibit T3C to the Company’s application for qualification of indentures on Form T-3 filed with the SEC on December 2, 2011).

 

  (iv) Exhibit T3D. – Limited Liability Company Agreement of Semiconductor Components Industries, LLC (incorporated by reference from Exhibit T3D to the Company’s application for qualification of indentures on Form T-3 filed with the SEC on December 2, 2011).

 

  (v) Exhibit T3E. – Certificate of Incorporation of SCG (Malaysia SMP) Holding Corporation (incorporated by reference from Exhibit T3E to the Company’s application for qualification of indentures on Form T-3 filed with the SEC on December 2, 2011).

 

  (vi) Exhibit T3F. – Bylaws of SCG (Malaysia SMP) Holding Corporation (incorporated by reference from Exhibit T3F to the Company’s application for qualification of indentures on Form T-3 filed with the SEC on December 2, 2011).

 

  (vii) Exhibit T3G. – Certificate of Incorporation, as amended, of SCG (Czech) Holding Corporation (formerly known as SCGJV Holdings, Inc.) (incorporated by reference from Exhibit T3G to the Company’s application for qualification of indentures on Form T-3 filed with the SEC on December 2, 2011).

 

  (viii) Exhibit T3H. – Bylaws of SCG (Czech) Holding Corporation (formerly known as SCGJV Holdings, Inc.) (incorporated by reference from Exhibit T3H to the Company’s application for qualification of indentures on Form T-3 filed with the SEC on December 2, 2011).

 

  (ix) Exhibit T3I. – Certificate of Incorporation, as amended of SCG (China) Holding Corporation (formerly known as Lano, Inc.) (incorporated by reference from Exhibit T3I to the Company’s application for qualification of indentures on Form T-3 filed with the SEC on December 2, 2011).

 

  (x) Exhibit T3J. – Bylaws of SCG (China) Holding Corporation (formerly known as Lano, Inc.) (incorporated by reference from Exhibit T3J to the Company’s application for qualification of indentures on Form T-3 filed with the SEC on December 2, 2011).

 

  (xi) Exhibit T3K. – Certificate of Incorporation, as amended, of Semiconductor Components Industries Puerto Rico, Inc. (formerly known as SCG Puerto Rico, Inc.) (incorporated by reference from Exhibit T3K to the Company’s application for qualification of indentures on Form T-3 filed with the SEC on December 2, 2011).

 

  (xii) Exhibit T3L. – Bylaws of Semiconductor Components Industries Puerto Rico, Inc. (incorporated by reference from Exhibit T3L to the Company’s application for qualification of indentures on Form T-3 filed with the SEC on December 2, 2011).

 

  (xiii) Exhibit T3M. – Articles of Incorporation, as amended, of Semiconductor Components Industries of Rhode Island, Inc. (formerly known as Cherry Semiconductor Corporation) (incorporated by reference from Exhibit T3M to the Company’s application for qualification of indentures on Form T-3 filed with the SEC on December 2, 2011).

 

  (xiv) Exhibit T3N. – Bylaws of Semiconductor Components Industries of Rhode Island, Inc. (formerly known as Cherry Semiconductor Corporation) (incorporated by reference from Exhibit T3N to the Company’s application for qualification of indentures on Form T-3 filed with the SEC on December 2, 2011).

 

15


  (xv) Exhibit T3O. – Certificate of Formation of SCG International Development LLC (incorporated by reference from Exhibit T3O to the Company’s application for qualification of indentures on Form T-3 filed with the SEC on December 2, 2011).

 

  (xvi) Exhibit T3P. – Limited Liability Company Agreement of SCG International Development, LLC (incorporated by reference from Exhibit T3P to the Company’s application for qualification of indentures on Form T-3 filed with the SEC on December 2, 2011).

 

  (xvii) Exhibit T3Q. – Articles of Incorporation, as amended, of Semiconductor Components Industries International of Rhode Island, Inc. (formerly known as Cherry Semiconductor International, Inc.) (incorporated by reference from Exhibit T3Q to the Company’s application for qualification of indentures on Form T-3 filed with the SEC on December 2, 2011).

 

  (xviii) Exhibit T3R. – Bylaws of Semiconductor Components Industries International of Rhode Island, Inc. (formerly known as Cherry Semiconductor International, Inc.) (incorporated by reference from Exhibit T3R to the Company’s application for qualification of indentures on Form T-3 filed with the SEC on December 2, 2011).

 

  (xix) Exhibit T3S. – Indenture dated as of December 15, 2011 among the Company, the Subsidiary Guarantors and Deutsche Bank Trust Company Americas, as Trustee (incorporated by reference to Exhibit 4.1 to the Company’s Form 8-K report filed with the SEC on December 19, 2011).

 

  (xx) Exhibit T3T. – Form of Exchange Agreement.

 

  (xxi) Exhibit T3U. – Statement of eligibility of Trustee on Form T-1.

 

  (xxii) Exhibit T3V. – Cross reference sheet showing the location in the Indenture of the provisions therein pursuant to Sections 310 through 318(a), inclusive, of the Trust Indenture Act of 1939 (included in Exhibit T3S).

 

16


SIGNATURE

Pursuant to the requirements of the Trust Indenture Act of 1939, the applicant, ON Semiconductor Corporation, a corporation organized and existing under the laws of the State of Delaware, has duly caused this application to be signed on its behalf by the undersigned, thereunto duly authorized, and its seal to be hereunto affixed and attested, all in the city of Phoenix, and the State of Arizona, on the 7th day of March, 2013.

 

(SEAL)        
      ON Semiconductor Corporation
Attest:  

/s/ Linda Lee

    By:  

/s/ Keith D. Jackson

Name:   Linda Lee     Name:   Keith D. Jackson
Title:   Administrative Assistant     Title:   President and Chief Executive Officer

Pursuant to the requirements of the Trust Indenture Act of 1939, the applicant, Semiconductor Components Industries, LLC, a limited liability company organized and existing under the laws of the State of Delaware, has duly caused this application to be signed on its behalf by the undersigned, thereunto duly authorized, and its seal to be hereunto affixed and attested, all in the city of Phoenix, and the State of Arizona, on the 7th day of March, 2013.

 

(SEAL)      
      Semiconductor Components Industries, LLC
Attest:  

/s/ Linda Lee

    By:  

/s/ Keith D. Jackson

Name:   Linda Lee     Name:   Keith D. Jackson
Title:   Administrative Assistant     Title:   President and Chief Executive Officer

Pursuant to the requirements of the Trust Indenture Act of 1939, the applicant, SCG (Malaysia SMP) Holding Corporation, a corporation organized and existing under the laws of the State of Delaware, has duly caused this application to be signed on its behalf by the undersigned, thereunto duly authorized, and its seal to be hereunto affixed and attested, all in the city of Phoenix, and the State of Arizona, on the 7th day of March, 2013.

 

(SEAL)      
      SCG (Malaysia SMP) Holding Corporation
Attest:  

/s/ Linda Lee

    By:  

/s/ Keith D. Jackson

Name:   Linda Lee     Name:   Keith D. Jackson
Title:   Administrative Assistant     Title:   President

 

17


Pursuant to the requirements of the Trust Indenture Act of 1939, the applicant, SCG (Czech) Holding Corporation, a corporation organized and existing under the laws of the State of Delaware, has duly caused this application to be signed on its behalf by the undersigned, thereunto duly authorized, and its seal to be hereunto affixed and attested, all in the city of Phoenix, and the State of Arizona, on the 7th day of March, 2013.

 

(SEAL)      
      SCG (Czech) Holding Corporation
Attest:  

/s/ Linda Lee

    By:  

/s/ Keith D. Jackson

Name:   Linda Lee     Name:   Keith D. Jackson
Title:   Administrative Assistant     Title:   President

Pursuant to the requirements of the Trust Indenture Act of 1939, the applicant, SCG (China) Holding Corporation, a corporation organized and existing under the laws of the State of Delaware, has duly caused this application to be signed on its behalf by the undersigned, thereunto duly authorized, and its seal to be hereunto affixed and attested, all in the city of Phoenix, and the State of Arizona, on the 7th day of March, 2013.

 

(SEAL)      
      SCG (China) Holding Corporation
Attest:  

/s/ Linda Lee

    By:  

/s/ Keith D. Jackson

Name:   Linda Lee     Name:   Keith D. Jackson
Title:   Administrative Assistant     Title:   President

Pursuant to the requirements of the Trust Indenture Act of 1939, the applicant, Semiconductor Components Industries Puerto Rico, Inc., a corporation organized and existing under the laws of the State of Delaware, has duly caused this application to be signed on its behalf by the undersigned, thereunto duly authorized, and its seal to be hereunto affixed and attested, all in the city of Phoenix, and the State of Arizona, on the 7th day of March, 2013.

 

(SEAL)      
      Semiconductor Components Industries Puerto Rico, Inc.
Attest:  

/s/ Linda Lee

    By:  

/s/ Keith D. Jackson

Name:   Linda Lee     Name:   Keith D. Jackson
Title:   Administrative Assistant     Title:   President

 

18


Pursuant to the requirements of the Trust Indenture Act of 1939, the applicant, Semiconductor Components Industries of Rhode Island, Inc., a corporation organized and existing under the laws of the State of Rhode Island, has duly caused this application to be signed on its behalf by the undersigned, thereunto duly authorized, all in the city of Phoenix, and the State of Arizona, on the 7th day of March, 2013.

 

      Semiconductor Components Industries of Rhode Island, Inc.
Attest:  

/s/ Linda Lee

    By:  

/s/ Keith D. Jackson

Name:   Linda Lee     Name:   Keith D. Jackson
Title:   Administrative Assistant     Title:   Chief Executive Officer and President

Pursuant to the requirements of the Trust Indenture Act of 1939, the applicant, SCG International Development LLC, a limited liability company organized and existing under the laws of the State of Delaware, has duly caused this application to be signed on its behalf by the undersigned, thereunto duly authorized, and its seal to be hereunto affixed and attested, all in the city of Phoenix, and the State of Arizona, on the 7th day of March, 2013.

 

(SEAL)      
      SCG International Development LLC
Attest:  

/s/ Linda Lee

    By:  

/s/ Keith D. Jackson

Name:   Linda Lee     Name:   Keith D. Jackson
Title:   Administrative Assistant     Title:   President

Pursuant to the requirements of the Trust Indenture Act of 1939, the applicant, Semiconductor Components Industries International of Rhode Island, Inc., a corporation organized and existing under the laws of the State of Rhode Island, has duly caused this application to be signed on its behalf by the undersigned, thereunto duly authorized, all in the city of Phoenix, and the State of Arizona, on the 7th day of March, 2013.

 

      Semiconductor Components Industries International of Rhode Island, Inc.
Attest:  

/s/ Linda Lee

    By:  

/s/ Keith D. Jackson

Name:   Linda Lee     Name:   Keith D. Jackson
Title:   Administrative Assistant     Title:   Chief Executive Officer and President

16712157

 

19