Deutsche Bank and Bank of America launched syndication last Friday of a seven-year, $2 billion term loan for Fresenius Medical Care. Pricing on the term loan could not be determined. The other tranches of the financing, a five-year, $1 billion revolver and a five-year, $2 billion term loan "A," launched at the end of June. The additional term loan was delayed as a result of regulatory issues. Pricing on the revolver and "A" loan is LIBOR plus 137.5 basis points (LMW 8/1).
The deal backs the $3.5 billion acquisition of Renal Care Group, a dialysis company, and will also pay back Fresenius' existing debt which consists of a $750 million revolver and a $450 million term loan "A."
One investor noted that the market has been waiting quite some time for the final part of the deal to launch. "The additional [term] loan was originally supposed to launch sometime in the fall, but then they reworked the deal [and] moved some money around between the tranches and then the regulatory problems became an issue," he said. "It's good to see that this thing is finally done [because] it's a pretty big deal."
Based in Germany, Fresenius is one of the world's largest providers of dialysis products and services. Bankers at B of A and Deutsche Bank declined comment. A spokesman at Fresenius also declined comment.