Credit Suisse First Boston, Bank of America and Dresdner Bank were set for a bank meeting in Europe last Friday for dialysis provider Fresenius Medical Care's $1.5 billion refinancing credit. The U.S. launch is set for tomorrow. One investor pointed to the success of DaVita's $800 million "B" piece in March 2002 and suggested that Fresenius would likely do the same or better. The DaVita deal blew out with more than $1 billion in commitments (LMW, 4/1). DaVita is also a dialysis provider and its debt is quoted at the 100 to 100 1/2 context, according to LoanX.
A banker familiar with the credit noted that Fresenius is rated higher than DaVita at BB/Ba1 and is priced lower. The deal includes a $500 million "B" loan, with a revolver and "A" piece of equal amounts. Pricing is set at LIBOR plus 3% for the institutional loan, while the pro rata is priced at LIBOR plus 21/ 4%. There is also a 50 basis point commitment fee. DaVita's "B" priced at LIBOR plus 31/ 4%.
The new debt will refinance Fresenius' facility set up after its 1996 acquisition of National Medical Care, another banker explained. This credit is reportedly of similar size and pricing is set to expire next month. A spokesman from Fresenius did not return calls by press time. A CSFB official declined to comment, while B of A and Dresdner bankers could not be reached by press time.