Fresenius Medical Care AG & Co. KGaA ("the company" or "Fresenius Medical Care"), the world's largest provider of dialysis products and services, today announced the pricing of US$-denominated and €-denominated senior unsecured notes (together "the senior notes") in the principal amounts of US$650 million and €300 million, respectively, both due 2021. The principal amount of the US$ senior notes was increased from the amount initially offered of US$500 million.
“We are pleased to have successfully completed these offerings. This means a further improvement of our solid funding structure. And it also enhances our flexibility for further pursuing our strategy of sustainable growth.”
The coupon for the US$ senior notes will be 5.75%. With a price of 99.060% at issuance, the yield to maturity will be 5.875%. The coupon for the € senior notes will be 5.25%. The € senior notes were issued at par. Net proceeds amounting to approximately US$1,033 million from the offering will be used to repay indebtedness, for acquisitions including the company's recently announced acquisition of Euromedic's dialysis service business and for general corporate purposes to support the renal products and services business.
Michael Brosnan, chief financial officer of the company, commented, "We are pleased to have successfully completed these offerings. This means a further improvement of our solid funding structure. And it also enhances our flexibility for further pursuing our strategy of sustainable growth."
The € senior notes were offered by FMC Finance VII S.A., and the US$ senior notes were offered by Fresenius Medical Care US Finance, Inc., both wholly owned subsidiaries of the company. The senior notes will be guaranteed on a senior basis jointly and severally by the company, Fresenius Medical Care Holdings, Inc. and Fresenius Medical Care Deutschland GmbH. The senior notes were not registered under the Securities Act of 1933 as amended, but were offered to "qualified institutional buyers" in the United States pursuant to the exemption from registration provided by Rule 144A under the Securities Act and in an "offshore transaction" pursuant to Regulation S under the Securities Act. The senior notes may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements.
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