March 19 (Bloomberg) -- Osram GmbH, the lighting unit of Siemens AG, raised 1.25 billion euros ($1.6 billion) of debt from banks ahead of its planned spinoff.
The five-year deal comprises a 300 million-euro term loan and a 950 million-euro credit line, the Munich-based company said in a statement. The term loan will be partly used to repay Siemens, it said.
The loans “ensure that Osram has sufficient funding capability and ample flexibility” after its exit from Siemens, Klaus Patzak, Osram’s chief financial officer, said.
Siemens won backing from 98 percent of shareholders in January to separate from Osram. Earlier this month, some shareholders of Europe’s largest engineering company filed a motion against the move, preventing Osram’s shares from being listed in April.
The debt was arranged by Commerzbank AG, Deutsche Bank AG, Goldman Sachs Group Inc., UBS AG and UniCredit SpA, according to the statement.
To contact the reporter on this story: Tom Freke in London at email@example.com
To contact the editor responsible for this story: Faris Khan at firstname.lastname@example.org