Five banks line up €1.625 billion of debt on Osram takeover

Five banks line up €1.625 billion of debt on Osram takeover
FILE PHOTO: Logo of lamp manufacturer Osram is pictured during official opening of the company 'World of light' showroom in Munich, Germany, October 24, 2017. REUTERS/Michaela Rehle/File Photo -
Copyright
Michaela Rehle(Reuters)
Text size Aa Aa

By Claire Ruckin

LONDON (LPC) – Five banks have lined up a €1.625bn (£1.46 billion) debt financing to back a takeover offer of German lighting group Osram by private equity firms Bain and Carlyle, banking sources said.

The two investors offered €35 a share, Osram said in a statement on July 3, putting an equity value on Osram of €3.4bn.

Credit Suisse, Deutsche Bank, Goldman Sachs, Macquarie and Nomura are leading the debt financing, the sources said.

The financing comprises €1.325bn of bonds and a €300m revolving credit facility, the sources said.

It is likely to roadshow to bond investors in the fourth quarter, the sources said.

Bain declined to comment. Carlyle was not immediately available to comment.

Osram, which is struggling with weakness in the automotive industry and a broader economic slowdown, has seen its stock lose more than 60% of its value since hitting a high of €79.58 in January 2018.

In February, the company had confirmed that Bain and Carlyle were looking at whether to jointly bid for up to 100 percent of its shares. But weak financial performance had led many investors to doubt whether the investors would actually go ahead with their plan.

(Editing by Christopher Mangham)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.