March 12, 2010
Fresenius improves credit facility terms
Fresenius considerably improved the terms of its 2008 syndicated credit agreement through an amendment supported by a vast majority of its lenders.
Within the scope of the amended agreement, the interest rate of the approximately US$1.2 billion term loan B (new term loan C) will be reduced by one-third. The new applicable interest rate will consist of the relevant money market rate (LIBOR and EURIBOR) subject to a 1.50% floor (currently 3.25%), plus a 3.00% margin (currently 3.50%). Based on current market rates, the amendment results in a 2.25% reduction compared with the current applicable interest rate. One-time expenses related to the amendment will impact Fresenius' results for the first quarter of 2010. Fresenius expects a positive contribution to Group earnings for the full fiscal year.
The syndicated credit agreement was concluded in August 2008 as part of the acquisition financing for APP Pharmaceuticals, Inc. Since the acquisition, both Fresenius' debt ratios and conditions on the debt markets have improved considerably. In light of these developments, Fresenius decided in February 2010 to approach its lenders to renegotiate terms of the agreement.
Fresenius is a health care group with international operations, providing products and services for dialysis, hospital and outpatient medical care. In 2009, group sales were approx. €14.2 billion. On December 31, 2009 the Fresenius Group had 130,510 employees worldwide.
For more information visit the Company's website at www.fresenius.com.
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. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
Board of Management: Dr. Ulf M. Schneider (President and CEO), Rainer Baule, Dr. Francesco De Meo,
Dr. Jürgen Götz, Dr. Ben Lipps, Stephan Sturm, Dr. Ernst Wastler
Supervisory Board: Dr. Gerd Krick (Chairman)
Registered Office: Bad Homburg, Germany/Commercial Register No. HRB 10660