Bulletin: Austria-Based LED Manufacturer Ams-OSRAM Will Lengthen Its Maturity Profile By Tapping Senior Unsecured Notes

This report does not constitute a rating action. STOCKHOLM (S&P Global Ratings) Sept. 16, 2024--S&P Global Ratings said today that it anticipates that ams-OSRAM will use the proceeds of tapping its senior unsecured notes to repay short-term debt. We do not expect the transaction to affect its credit metrics. Austria-based LED manufacturer will issue a tap of its €200 million senior unsecured notes maturing in 2029 on Sept. 20, 2024, thus improving its maturity profile. The effect on leverage will be neutral; we now forecast that this will be about 6.7x in 2024, slightly above the 6.5x we previously predicted (see " ams-OSRAM AG Downgraded To 'B' On Higher-Than-Expected Leverage Due To Lower Profitability; Outlook Stable ," May 16, 2024).

...September 16, 2024 This report does not constitute a rating action. STOCKHOLM (S&P Global Ratings) Sept. 16, 2024--S&P Global Ratings said today that it anticipates that ams-OSRAM will use the proceeds of tapping its senior unsecured notes to repay short-term debt. We do not expect the transaction to affect its credit metrics. Austria-based LED manufacturer will issue a tap of its 200 million senior unsecured notes maturing in 2029 on Sept. 20, 2024, thus improving its maturity profile. The effect on leverage will be neutral; we now forecast that this will be about 6.7x in 2024, slightly above the 6.5x we previously predicted (see "ams-OSRAM AG Downgraded To 'B' On Higher-Than-Expected Leverage Due To Lower Profitability; Outlook Stable," May 16, 2024). Our recovery rating of '3' on the unsecured notes is unaffected by the transaction and continues to indicate meaningful expected recoveries of 50%-70% (rounded estimate: 65%) in the event of a default. Although our analysis indicates that...

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