Fresenius launches U.S. and euro denominated term loan D to investors

By Sara Rosenberg

New York, March 3 - Fresenius SE held a conference call on Thursday to launch a new term loan D that is comprised of a $983.5 million tranche and a €162.5 million tranche, according to a market source.

Price talk on the term loan D is Libor/Euribor plus 250 basis points with a 1% Libor floor and an offer price of 99¾ to par, the source said.

Deutsche Bank is the lead bank on the deal.

Commitments are due on March 9.

Proceeds will be used to refinance an existing term loan C.

The term loan C was completed in March 2010 as part of a refinancing. At close, it consisted of an approximately $996 million tranche and a roughly €165 million tranche, and it was done at pricing of Libor/Euribor plus 300 bps with a step-down to Libor plus 275 bps after March 31, 2011 if leverage is 3.5 times or less. There is a 1.5% Libor floor and 101 soft call protection for one year.

The maturity on the term loan D is September 2014, the same as the term loan C maturity, and covenants are remaining the same.

Fresenius is a Bad Homburg, Germany-based provider of products and services for individuals undergoing dialysis.

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