The bonds from AMS Osram were originally supposed to bring in €800 million.
Image: Thorsten Riedl
Assessment by Thorsten Riedl at 8 a.m
AMS Osram has taken an important step towards securing its finances: the bonds, which, along with the capital increase, are the most important thing for obtaining fresh funds, were well received on the market.
However, in an environment in which bonds are generally better received and with interest rates of 10.5 and 12.5%, this is not a big surprise. A further planned financing requirement of over €200 million is now no longer needed – this should reassure investors and create a good mood for the next step. Now it will depend on how investors react to the price of the new shares and the subscription rights trading with them. You can hear that conversations are going on.
The schedule says that the capital measures should be completed this year. However, time is running out – and the shares will remain under pressure as long as details of the capital increase are not published and short sellers are betting against the AMS-Osram management.
(AWP) AMS Osram has priced the senior bonds announced in September at €1 billion. The bonds, which were originally supposed to bring in €800 million, were increased due to strong demand, the company announced on Thursday evening.
The two bonds are a senior unsecured bond with an aggregate principal amount of €625 million due in March 2029 and a coupon of 10.5% per annum and a senior unsecured bond with an aggregate principal amount of $400 million due in March 2029 and an annual coupon of 12.25%.
The Company plans to consummate the offering and issue the notes on or about November 30, 2023. The proceeds from the issue, together with the planned rights offering and the sale and leaseback of the new Kulim 8-inch factory building, will be used to restructure the group’s finances. Among other things, this is intended to fully repay outstanding dollar senior notes worth 450 million and euro senior notes worth 850 million. Management also plans to pay off outstanding amounts from certain bank loans and invest the money in corporate purposes.
The additional proceeds from the increase will be used to bring forward the last component of the holistic financing plan announced in September, it is said. AMS Osram now assumes that the previously planned additional financing requirement of around €200 million is no longer needed.
The company also announced that it had entered into an agreement with Commerzbank to extend the overdraft facility in the amount of €100 million until June 2026. The agreement is expected to come into force after the planned subscription rights offer has been completed.
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2023-11-17 10:51:45
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– AMS Osram secures more money than hoped
The sensor maker increased senior bonds announced in September to €1 billion due to strong demand.