Osram optimizes financing agreements

2015/02/24

Osram has optimized its financing agreements against the backdrop of general market developments as well as its improved financial strength. In the context of agreeing an early extension to the term of its existing €950 million revolving credit facility, the lighting group has been able to achieve a considerable improvement in its loan conditions. In addition, Osram has been granted approval for a loan of €200 million by the European Investment Bank (EIB) on attractive terms. “The agreements underline the great confidence of our creditors in Osram's performance,” said Klaus Patzak, Chief Financial Officer of OSRAM Licht AG. “We have thereby secured financial security and flexibility for the coming years which we can use in a selective manner, regardless of the situation on the capital markets.”

During the winter of 2012/2013 and in advance of the spin-off from Siemens, Osram agreed a syndicated loan facility of €1.25 billion with a tenor to January 2018. This consisted of a term loan, which has been repaid in the meantime, as well as the €950 million revolving credit facility. Osram has now negotiated an extension of this facility until 2020 with options to extend by a further twelve months after both the first and second year. A considerable improvement in borrowing terms was also achieved.

In addition, Osram has signed an agreement with the EIB for a loan totaling €200 million for a term of up to eight years. The loan will promote research and development activities in the fields of light-emitting diodes (LED) and organic light-emitting diodes (OLED). Full drawdown of the loan is permissible up until December 2015.

ABOUT OSRAM

OSRAM of Munich, Germany is one of the two leading light manufacturers in the world. The company's portfolio covers the entire value chain from components – including lamps, electronic control gear and opto semiconductors such as light-emitting diodes (LED) – as well as luminaires, light management systems and lighting solutions. OSRAM has around 34,000 employees worldwide and generated revenue of more than €5.1 billion in fiscal 2014 (ended September 30). The company's business activities have been focusing on light – and hence on quality of life – for over 100 years. The company was listed on the stock exchanges in Frankfurt and Munich on July 8, 2013 (ISIN: DE000LED4000; WKN: LED 400; Trading symbol: OSR).
Additional information can be found at www.osram-group.com

DISCLAIMER

This document contains statements and information pertaining to our future business and financial performance and future developments that may constitute forward-looking statements – i.e. statements about processes that take place in the future, not in the past. These statements pertaining to the future can be identified by expressions such as "anticipate", "expect", "want", "intend", "plan", "believe", "aspire", "estimate", "will”, "predict" or words of similar meaning. Such statements are based on current expectations and certain assumptions of OSRAM‟s management. They are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond OSRAM‟s control, affect OSRAM‟s operations, performance, business strategy and results and could cause the actual results, performance or achievements of OSRAM to be material different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements or anticipated on the basis of historic trends. These factors include in particular, but are not limited to, the matters described in the chapter “Report on Opportunities and Risks” in the Annual Report of OSRAM Licht Group for fiscal 2013. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of OSRAM may vary materially from those described in the relevant forward-looking statement as being expected, anticipated, intended, planned, believed, sought, estimated or projected. OSRAM neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures they reference.