Ams OSRAM Achieves Successful Pricing of EUR 1 Billion Senior Notes

ams OSRAM has announced the successful pricing of EUR 1 billion in senior unsecured notes set to mature in 2032, with an attractive coupon rate of 7.250%. This move aims to support the company's transition towards a positive free cash flow from 2027. The proceeds will be allocated to redeem the company's existing higher-interest notes, thus reducing annual interest expenses by approximately EUR 40 million.

The issuance was upsized due to strong investor demand, reflecting confidence in the company's Digital Photonics strategy. The transaction forms a part of ams OSRAM's Balance Sheet Deleveraging Plan, aimed at strengthening financial stability by addressing upcoming debt maturities and improving the cash flow profile.

The notes are expected to be issued around June 1, 2026, and will facilitate redemption of part of its outstanding, more costly debt, enhancing financial efficiency.