Austria-based ams launches €650 million and $400 million five-year notes at talk; pricing Tuesday

By Paul A. Harris

Portland, Ore., June 30 – Austrian sensor manufacturer ams AG set tranche sizes in its two-part offering of five-year senior notes (Ba3/BB-/BB-) and launched the deal in the middle of talk, according to market sources.

A €650 million tranche of the notes launched with a 6% coupon at 99. Price talk called for a coupon in the 6% area at 99.

A $400 million tranche of the notes launched with a 7% coupon at 99. Price talk called for a coupon in the 7% area at 99.

The deal is set to price on Tuesday.

On Monday the deal was downsized to €1 billion equivalent from €1.3 billion equivalent.

Joint global coordinator and joint physical bookrunner HSBC is leading the dollar-denominated tranche, for which it will bill and deliver. Joint global coordinator and joint physical bookrunner UBS is leading the euro-denominated tranches, for which is will bill and deliver.

BofA Securities, Citigroup, Commerzbank, Credit Agricole CIB, Deutsche Bank and Morgan Stanley are joint bookrunners for both tranches. Erste is the co-manager for both tranches.

The Rule 144A and Regulation S for life notes become callable after two years at par plus 75% of the respective coupons. The initial call premium is increased from 50%.

The Premstatten, Austria-based company plans to use the proceeds, together with proceeds from a rights offering, to partially fund the acquisition of Osram Licht AG and to refinance debt.

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