Fresenius sets par offer price on U.S., euro-denominated term loan D

By Sara Rosenberg

New York, March 9 - Fresenius SE has set the offer price on its new term loan D at par, compared to initial talk at launch of 99¾ to par, according to a market source.

In addition, while pricing on the term loan D was left at Libor/Euribor plus 250 basis points with a 1% Libor floor, a step-down to Libor/Euribor plus 225 bps was added when net total leverage is 2.75 times, the source said. The step-down can only occur after Jan. 1, 2012.

Also, the term loan D now includes 101 soft call protection for one year.

The term loan D is comprised of a $983.5 million tranche and a €162.5 million tranche.

Deutsche Bank is the lead bank on the deal.

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 about $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 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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