ams-Osram upsizes to €1 billion equivalent, sets price talk in two-part notes offering

By Paul A. Harris

Portland, Ore., Nov. 16 – ams-Osram AG upsized its offering of senior notes due March 2029 (B2/BB-/BB-) to €1 billion equivalent from €800 million equivalent, according to market sources.

The deal features dollar- and euro-denominated tranches.

The dollar-denominated notes are talked to yield in the 12½% area, in line with initial guidance in the mid-12% area.

The euro-denominated notes are talked to yield 10¾% to 11%, tight to guidance in the 11% area.

Tranche sizes remain to be determined.

The deal is expected to price on Thursday.

The dollar-denominated notes are being led by global coordinator and joint physical bookrunner UBS (bill and deliver), as well as joint global coordinators and physical bookrunners Deutsche Bank and HSBC.

The euro-denominated notes are being led by joint global coordinator and physical bookrunner HSBC (bill and deliver), as well as joint global coordinators Deutsche Bank and UBS.

Commerzbank and UniCredit are joint global coordinators and joint physical bookrunners for both tranches. Credit Agricole CIB, Erste, LBBW, Morgan Stanley and RBI are joint bookrunners for both tranches.

The five-year notes in both tranches are subject to initial calls after two years at par plus 50% of the respective coupons. All of the notes come with 101% poison puts.

The Munich-based electric light manufacturer plans to use the proceeds plus proceeds from a rights issue and a Malaysia sale-leaseback transaction to refinance debt and for general corporate purposes.

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