Ams OSRAM Optimizes Financing with EUR 200 Million Private Placement

ams OSRAM AG has announced the successful private placement of EUR 200 million in senior notes due 2029. This initiative aims to replace the company's existing short-term financing facilities with long-term debt. The step is part of a broader strategy to optimize the firm's financing structure.

The placed senior notes bear an interest rate of 10.5%. The proceeds from this placement will be used to repay outstanding amounts under certain short-term bank and working capital facilities. The transaction is anticipated to close around 20 September 2024.

According to Rainer Irle, CFO of ams OSRAM, the company has been actively working towards enhancing its financing structure. Last autumn, ams OSRAM refinanced over EUR 2 billion for a balanced maturity profile of its long-term debt, showcasing a conservative financing approach.

The newly placed senior notes will provide ams OSRAM with a more stable and predictable financing base, aligning with its long-term financial strategy and goals.