ams OSRAM - comment

We expect no material impact on bond prices, as the use of asset sale proceeds for debt repayment was already expected. The company has launched a €143m Guarantor Disposal Offer following the sale of its non-optical mixed-signal sensor business and the planned disposal of its CMOS image sensor business. Under the terms of the bonds, proceeds must be used for debt reduction, with the company tendering for both the convertible and €725m 2029 Senior Notes at 100%.

The tender is broadly positive for sentiment, as it provides a further €143m reduction in debt. Both instruments are eligible; we expect all of the tender to be taken up by convertible holders as the 2029s trade c. 105%. The tender runs from 15 October to 16 November, with settlement expected on 19 November.