Commentary & Deal Flow

ams-OSRAM AG (AMSSW) EUR800m equivalent (EUR/US$) 144A/Reg S 5.25yNC2.25 sr notes 2-part. Expect B2/BB-/BB- (stable/negative/stable). No reg rights. List ISE. NY law.

    - EUR TBA due March 2029 (5.25y). NC2.25 (MWC B+50bp) (50%,25%,par). Equity claw: 2.25y 40%. Via HSBC (B&D)/DB/UBS jt physical books/Commerz/UniCredit jt glocos/CA/Erse/LBBW/MS/RBI jt books.

     - US$ TBA due March 2029 (5.25y). NC2.25 (MWC T+50bp) (50%,25%,par). Equity claw: 2.25y 40%. Via UBS(B&D)/DB/HSBC jt physical books/Commerz/UniCredit jt glocos/CA/Erse/LBBW/MS/RBI jt books.

Virtual roadshow Mon-Weds (investor call at 4pm UKT/11am NYT today). UOP: to fund its a new financing plan to strengthen its B/S and improve its credit profile, along with a EUR800m rights offering vis HSBC/MS/UBS (shareholder approval for the capital increase was granted 10/20/23), and a EUR400m asset-level financing - the Malaysia SLB (OSRAM Opto Semiconductors (Malaysia) Sdn Bhd EUR400m sale leased back of the Group's new LED focused semiconductor production faciiity in Malaysia (KulimII)), and the sale of a manufacturing facility in Asia for EUR50m, to redeem in full its existing EUR1.274bn equivalent notes (EUR850m 6% sr notes due 07/31/25 (callable at 101.50), US$450m sr notes due 07/31/25 (callable at 101.75)), to repay EUR226m certain of the Group's bank facilities, and EUR400m for GCP, including repaying other financial debt when it comes due. ams OSRAM also plans additional debt instruments of around EUR200m in a mix of debt instruments, such as unsecured notes, bi-lateral debt facilities, or other instruments, subject to market conditions in 2024 to complete the financing package (repay other debt and GCP). AMS intends to achieve an investment grade profile by 2026. Biz: global leader in sensor products, providing high-performance sensing technologies with a strategic focus on optical, image and audio sensing solutions for use across a variety of communications, consumer, automotive, industrial and medical end-markets. HQ: Premstaetten, Austria. (Refinancing plan announced 09/27/2023).