Published on 10/24/2014 in the Prospect News High Yield Daily.
New Issue: Fresenius prices $900 million senior notes in two-part bullet deal
By Paul A. Harris
Portland, Ore., Oct. 24 – Fresenius Medical Care US Finance II, Inc. priced $900 million of non-callable senior notes (Ba2/BB+/) in two tranches on Friday, according to a syndicate source.
The deal included $500 million of six-year notes, which priced at par to yield 4 1/8%. The yield printed at the tight end of the 4 1/8% to 4¼% yield talk.
In addition Fresenius priced $400 million of 10-year notes at par to yield 4¾%, at the tight end of the 4¾% to 4 7/8% yield talk.
Wells Fargo Securities LLC was the left bookrunner. Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Scotia Capital (USA) Inc., HSBC Securities (USA) Inc. and SunTrust Robinson Humphrey Inc. were joint bookrunners.
The Bad Homburg, Germany-based kidney dialysis company plans to use the proceeds to repay the term loan A-2 under its 2012 credit agreement as well as other short term debt and also to fund acquisitions and for general corporate purposes.
| Issuer: | Fresenius Medical Care US Finance II, Inc.
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| Amount: | $900 million
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| Securities: | Non-callable senior notes
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| Left bookrunner: | Wells Fargo Securities LLC
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| Joint bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Scotia Capital (USA) Inc., HSBC Securities (USA) Inc., SunTrust Robinson Humphrey Inc.
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| Co-managers: | BBVA Securities Inc., BNP Paribas Securities Corp., DNB Markets Inc., MUFG, PNC Capital Markets LLC, Santander Investment Securities Inc., SMBC Nikko Capital Markets Ltd., TD Securities (USA) LLC
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| Trade date: | Oct. 24
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| Settlement date: | Oct. 29
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| Ratings: | Moody's: Ba2
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| Standard & Poor's: BB+
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| Distribution: | Rule 144A and Regulation S for life
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| Marketing: | Roadshow
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| Six-year notes
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| Amount: | $500 million
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| Maturity: | Oct. 15, 2020
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| Coupon: | 4 1/8%
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| Price: | Par
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| Yield: | 4 1/8%
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| Spread: | 239 bps
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| Price talk: | 4 1/8% to 4¼%
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|
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| 10-year notes
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| Amount: | $400 million
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| Maturity: | Oct. 15, 2024
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| Coupon: | 4¾%
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| Price: | Par
|
| Yield: | 4¾%
|
| Spread: | 252 bps
|
| Price talk: | 4¾% to 4 7/8%
|
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