(Adds details of bond sale)
VIENNA, Oct 27 (Reuters) - 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)