Yesterday, FMC successfully issued USD 1.5 bn of senior unsecured bonds. The offering consists of two tranches: a) USD 800 mn of 5.625% bonds due July 2019 and b) USD 700 mn of 5.875% of bonds due January 2022. The bonds are issued by Fresenius Medical Care US Finance II and the proceeds are to be used for acquisitions, to refinance debt and for general corporate purposes.
S&P assigned the bonds an initial BB rating and Moody’s a Ba2 rating. In view of FMC‘s acquisition of Liberty Dialysis for USD 1.7 bn and the upcoming maturities, the issuance does not come as a suprise. The market expects that FMC will continue to access capital markets in 2012 to further enhance its liquidity.