Fresenius sets initial conversion price for convertible bonds due 2020

By Marisa Wong

Madison, Wis., Oct. 9 – Fresenius Medical Care AG & Co. KGaA set the initial conversion price of its equity-neutral convertible bonds at €73.6448, according to a press release.

The conversion price represents a 35% premium over the reference price of €54.55171. The reference price is the daily volume weighted average of Fresenius’ Xetra shares over 15 days starting Sept. 17 until Oct. 8.

As previously announced, Fresenius placed €400 million of 1.125% convertible bonds due 2020 on Sept. 16.

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, as reported by Prospect News.

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.

Fresenius Medical Care is a Bad Homburg, Germany-based health care company. It will use proceeds for general corporate purposes.

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