Sensor maker AMS forecast on Tuesday a rise in revenues in the fourth quarter from the third, citing solid demand, as it sold a $900 million convertible bond to strengthen its finances after its takeover of lighting group Osram.
The Austrian company said earlier this month its third-quarter revenue fell 13% to $564 million, in the upper end of its guidance of $530 million-$570 million, a figure it repeated on Tuesday.
It set itself a higher target of $650 million-$690 million for the last three months of the year. In the same quarter of last year it had revenue of $655 million.
“AMS sees strong business momentum continuing in the fourth quarter given significant seasonal ramps and resilient demand in AMS’ consumer business, notwithstanding the ongoing global pandemic,” the company said in a statement.
“Improving demand trends are taking hold in AMS’ automotive, industrial and medical businesses,” it added.
AMS said this month it was preparing to issue a seven-year bond convertible into new or existing shares equal to up to 10% of its share capital. On Tuesday, it sold the 760 million euro ($898 million) bond with a coupon of 2.125% a year through a bookbuilding process with a planned settlement date of Nov. 3.
The conversion price was initially set at 27.7209 euros, AMS said. At the current exchange rate, that is about 43% higher than Monday’s closing price of its Swiss-listed shares, 20.80 francs.
AMS said the bond’s proceeds would be used for “general corporate purposes”.
HSBC, Morgan Stanley and UBS are global coordinators and joint bookrunners of the issue, while Commerzbank, Credit Agricole, Deutsche Bank , and UniCredit are joint bookrunners, AMS said.
AMS has also agreed terms with a consortium of banks for a new 750 million euro bridge facility that will fund its takeover and integration of Germany’s Osram, and replace an existing facility, it said.
$1 = 0.8461 euros
Reporting by Francois Murphy; Editing by Mark Potter