(Bloomberg) -- Bonds of sensors producer AMS-Osram AG rose the most on record on Thursday after the company launched a plan to refinance its debt that includes an €800 million ($841 million) equity boost. Shares dropped to the lowest in 12 years.
Bonds due 2025 gained 4 cents on the euro to 98.6 cents, according to data compiled by Bloomberg. Stock tumbled as much as 23% in Zurich.
The Austrian company is set to raise €2.25 billion of new debt and equity to repay maturities in 2025 and 2026 as it goes through a restructuring of its operations, according to a press release published late on Wednesday.
The capital increase must be approved by shareholders in a meeting scheduled on Oct. 20. As part of the refinancing package, AMS-Osram also plans to raise €800 million in new senior unsecured notes and €300 million in asset-backed financing. Additional €350 million of debt will be issued next year.
It plans to refocus on producing intelligent sensors and emitters for the automotive, industrial and medical sectors, while it seeks to exit its optical components business. The firm is in talks with potential interested parties to sell the unit.
The transactions may help reduce debt and boost the equity ratio — a key measure of indebtedness — to 30%, and eventually lead to an investment grade credit score, the company said.
--With assistance from Allegra Catelli and Marton Eder.
©2023 Bloomberg L.P.