The so-called bridge financing, which includes a 3.1 billion-euro ($3.96 billion) tranche and a $2.15 billion portion, will be refinanced with long-term debt that includes high-yield bonds and loans, Bad Homburg, Germany-based Fresenius said in an offer document on its website.
The long-term debt will include 700 million euros and $200 million in facility A, 500 million euros and $1.2 billion in facility B, and a 400 million-euro revolving credit, all of which will have maturities between five and seven years, according to the filing. There will also be 1.5 billion euros and $750 million of a high-yield bridge facility that can be extended to seven years if it is not refinanced with senior bonds within the first year, Fresenius said.
Fresenius set a June 27 deadline for Rhoen Klinikum investors to tender their shares in its 3.1 billion-euro bid to buy the German hospital operator. The nation’s financial regulator approved the offer on May 18.
Deutsche Bank AG, JPMorgan Chase & Co., Societe Generale SA, Credit Suisse Group AG and UniCredit SpA (UCG) underwrote the debt financing.
Fresenius completed a 1 billion-euro capital increase on May 11 to help finance the deal, which will build annual revenue at the company’s hospital unit to 6 billion euros, about 8 percent of the German market.
To contact the reporter on this story: Patricia Kuo in London at email@example.com
To contact the editor responsible for this story: Faris Khan at firstname.lastname@example.org