January 12, 2009
Fresenius announces Senior Notes Offering
Fresenius today announced its intention to issue Senior Unsecured Notes through its subsidiary Fresenius U.S. Finance II, Inc., subject to market conditions. The offering will comprise separate euro and US dollar tranches. The Notes are expected to have a maturity of 6 years or more.
Proceeds of the Notes offering will be used to further repay the bridge loan used to finance the acquisition of APP Pharmaceuticals. This bridge loan currently amounts to US$ 650 million, half of the initial drawing of US$ 1,300 million in September 2008. The other components of the acquisition financing have already been successfully completed: Senior Secured Credit Facilities including US$ 2,500 million term loans and US$ 550 million revolving facilities, a € 289 million equity issue and a € 554 million Mandatory Exchangeable Bond.
The Notes are being offered in private placements and there will be no public offering of the Notes.
Fresenius confirms its outlook for 2008. Group sales were expected to grow by 9.5 to 10.5 % and net income by 10 to 15 %, both in constant currency. This outlook excludes the APP acquisition and related special items.
Fresenius also provides a preview on its expectations for 2009. Group organic sales growth is expected to be at least in the mid single-digit range. Net income growth in constant currency and before special items related to the APP acquisition is expected to be greater than organic sales growth. A detailed outlook will be provided as part of the 2008 earnings release expected to be issued on February 19, 2009.
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This release does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of Fresenius SE ("Fresenius") or any present or future member of its group nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of Fresenius or any member of its group or any commitment whatsoever. In particular, this release is not an offer of securities in the United States of America (including its territories and possessions), and securities of Fresenius SE may not be offered or sold in the United States of America absent registration under the Securities Act of 1933 (which Fresenius SE does not intend to effect) or pursuant to an exemption from registration.
This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. This includes the risk that the transaction will not be consummated or on other terms. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
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