AMS Osram - comment

Creditors received no update on the two key issues that will drive credit spreads in the medium term during AMS Osram’s Q3 results presentation. There was no progress reported on the Osram Licht put options and no update on the planned sale of the Kulim factory. With the euro bonds trading at 7.5% YTC, and with no meaningful maturities before the 2027 convertibles, a full refinancing in 2027 should be expected, particularly if the Kulim factory is successfully divested.

On the reported numbers, results were fully in line with guidance and market expectations, with core semiconductor revenue up 9%. The business continues to manage costs effectively, supporting an improvement in the EBITDA margin to 19.5%. EBITDA is marginally supported by a €10m contribution from asset sales. Overall, the results are a non-event.