ams OSRAM successfully extends Revolving Credit Facility (RCF) until September 2027

Premstaetten, Austria, and Munich, Germany (3 July 2025) -- ams OSRAM successfully extends Revolving Credit Facility (RCF) by another year until September 2027.

 

“Extending our Revolving Credit Facility by another year is one of the elements of our accelerated balance sheet improvement plan that we announced with our last earnings release. The swift execution proves the trust of our financial partners in our strategy.” said Rainer Irle, CFO of ams OSRAM.

On 30 April 2025, the company announced its accelerated balance sheet improvement plan consisting of five elements. The extension of the existing Revolving Credit Facility (RCF) is one of the elements. The RCF has been successfully extended with the same bank consortium by another year until September 2027, in line with the next upcoming maturity, namely the November 2027 Convertible Note. The extension includes mechanisms for a reduction to EUR 600m in line with reduced financing needs subject to certain milestones.

The RCF is primarily in place to cover any further significant exercises under the 'domination and profit and loss transfer agreement (DPLTA)’ put option of OSRAM Licht AG minority shareholders but can also be used for general corporate and working capital purposes. The successful extension of the RCF strengthens the company’s liquidity position.

The company’s balance sheet improvement plan aims to reach a target leverage ratio of net-debt / adj. EBITDA below 2 in an accelerated manner. The plan consists of various, complementary elements:
•    Further improving the free-cash-flow performance on the back of a seamless execution of its strategic efficiency program ‘Re-establish the Base’ and structural growth in its core semiconductor business
•    the disposal of its 8”-Kulim facility thereby eliminating the sale and leaseback (SLB) liability
•    the extension of the RCF
•    the consideration of strategic options for various additional assets with the goal to generate proceeds well above EUR 500 million. 
The plan aims at reducing the leverage ratio below 2, minimizing the amount to be refinanced, reducing the interest expense to below EUR 100 million annually and thereby strengthening the operating cash flow further.