ams-OSRAM wants to issue bonds worth 1 billion euros

The reason is debt refinancing. The bonds were due to the powerful
Demand increased.

The Styrian chip and sensor manufacturer ams-OSRAM wants to issue 1 billion euros in dollar and euro bonds to refinance debt. “It is expected that the bond offering will be completed and the bonds will be issued on or around November 30, 2023,” the group announced on Friday. The funds will be used, among other things, to repay existing bonds and outstanding amounts from certain bank loans.

The notes are unsecured senior notes with an aggregate face value of €625 million due in March 2029 and a coupon of 10.5 percent per annum and unsecured senior notes with an aggregate face value of $400 million (€368.70 million) due in March 2029 and a coupon of 12.25 percent per annum. AMS-OSRAM said in a statement that the bonds were increased due to strong demand.

With the additional proceeds from the raise, the final element of the previously announced comprehensive financing plan will be brought forward, with the company assuming that the previously planned additional financing requirements of approximately €200 million (previously expected for 2024) will no longer exist. necessary.

Comprehensive financing plan

In addition, the chip and sensor manufacturer has entered into an agreement with Commerzbank to extend current account credit worth €100 million until June 2026, according to the statement.

ams-OSRAM is currently implementing a comprehensive financing plan through which the company wants to strengthen its equity base and reduce debt. The group only committed to increasing its capital by 800 million euros in October. (Abba)