A $15 million piece of On Semiconductor's bank debt traded in the 87 1/2-88 1/2 range, down from 90. Dealers attribute the dip to general weakness in the sector, but expect levels will remain steady. "It's found its level and should trade back up," said a trader.
Another dealer said paper was offered in the 87 range by late last Wednesday. "It's hurt by the technology sector. Their major customer is Motorola, and they're having a tough time," he explained. J.P. Morgan Chase and Credit Lyonnais lead the $200 million deal, according to Capital DATA Loanware. Pricing is LIBOR plus 3%. The deal expires in 2007.