By Paul A. Harris
Portland, Ore., Nov. 16 – ams-Osram AG priced its two-part junk bond deal on Thursday after upsizing the offering to approximately €1 billion equivalent from €800 million equivalent, according to market sources.
The offering came in dollar- and euro-denominated tranches of senior notes due March 30, 2029 (B2/BB-/BB-).
A $400 million tranche of 12¼% notes priced at 99.087 to yield 12½%. The yield came in the middle of yield talk in the 12½% area. Initial guidance was in the mid-12% area.
A €625 million tranche of 10½% notes priced at 99.034 to yield 10¾%. The yield came at the tight end of the 10¾% to 11% yield talk. Initial guidance was in the 11% area.
The sizes and executions – with the larger euro tranche pricing tight to talk while the smaller dollar tranche priced in the middle of talk – reflected the deal’s audience, according to a trader in New York, who added that clients reflected a perception that it was predominantly a European deal.
The Munich-based electric light manufacturer plans to use the proceeds, including incremental proceeds resulting from the approximately €200 million upsize, plus proceeds from a rights issue and a Malaysia sale-leaseback transaction to refinance debt and for general corporate purposes.
| Issuer: | ams-Osram AG
|
| Amount: | Approximately €1 billion equivalent, increased from €800 million equivalent
|
| Issue: | Senior notes
|
| Maturity: | March 30, 2029
|
| Physical bookrunners: | UBS (bill and deliver), Deutsche Bank and HSBC for dollar notes; HSBC (bill and deliver), Deutsche Bank and UBS for euro notes
|
| Joint bookrunners: | Credit Agricole CIB, Erste, LBBW, Morgan Stanley and RBI
|
| Trade date: | Nov. 16
|
| Settlement date: | Nov. 30
|
| Ratings: | Moody’s: B2
|
| S&P: BB-
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
|
|
| Dollar notes
|
| Amount: | $400 million
|
| Coupon: | 12¼%
|
| Price: | 99.087
|
| Yield: | 12½%
|
| Spread: | 803 bps
|
| First call: | March 30, 2026 at 106.125
|
| Price talk: | 12½% area
|
|
|
| Euro notes
|
| Amount: | €625 million
|
| Coupon: | 10½%
|
| Price: | 99.034
|
| Yield: | 10¾%
|
| Spread: | 830 bps
|
| First call: | March 30, 2026 at 105.25
|
| Price talk: | 10¾% to 11%
|
|
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