By Rebecca Melvin
New York, Sept. 16 – Fresenius Medical Care AG & Co. KGaA priced €400 million of 5.5-year convertible bonds at par to yield 1.125% with a 35% initial conversion premium on Tuesday, according to a news release.
The initial conversion price will be determined when the stock reference price is set as the daily volume weighted average of its Xetra shares over 15 days starting Wednesday until Oct. 8.
Concurrently with the bonds, Fresenius purchased call options on its shares to offset potential dilution of share capital in connection with conversion of the bonds. The bonds are thereby “equity neutral.”
Pricing of the Regulation S deal came at the cheap end of 0.125% to 1.125% coupon talk and at the talked 35% premium point.
The bonds are guaranteed by subsidiaries Fresenius Medical Care Holdings Inc. and Fresenius Medical Care Deutschland GmbH.
Joint bookrunners and lead managers were BofA Merrill Lynch, Commerzbank AG and Societe Generale CIB. Fresenius Medical Care will purchase the call options from Societe Generale.
Application is being made to list the bonds on the open market segment of the Frankfurt Stock Exchange.
Fresenius Medical Care is a Bad Homburg, Germany-based health care company. It will use proceeds for general corporate purposes.
| Issuer: | Fresenius Medical Care AG & Co. KGaA
|
| Guarantors: | Fresenius Medical Care Holdings Inc. and Fresenius Medical Care Deutschland GmbH
|
| Issue: | Convertible bonds
|
| Amount: | €400 million
|
| Maturity: | Jan. 30, 2020
|
| Joint bookrunners: | BofA Merrill Lynch, Commerzbank AG, Societe Generale CIB
|
| Coupon: | 1.125%
|
| Price: | Par
|
| Yield: | 1.125%
|
| Conversion premium: | 35%
|
| Conversion price: | Based on VWAP of shares over 15 trading days until Oct. 8
|
| Price talk: | 0.125% to 1.125%, up 35%
|
| Pricing date: | Sept. 16
|
| Settlement date: | Sept. 19
|
| Stock symbol: | Xetra: FME
|
| Stock reference price: | VWAP from Sept. 17 to Oct. 8
|
| Distribution: | Regulation S
|
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