Fresenius 4.25% high yield bonds due 2019 broke in the secondary yesterday to be wrapped around 99.75, versus par reoffer, according to sources. The new bonds entered a softer secondary, with the iTraxx Crossover widening to 570 as Spanish and Italian government bond yields widened.

The €500 million offering inked in line with guidance, with pricing having been moved forward to today from Thursday due to strong demand for the issue, sources added.

As reported, the deal comes via joint bookrunners Deutsche Bank (B&D), Bayern LB, Commerzbank, LBBW, and RBS, alongside co-lead managers BBVA, BNP Paribas, DNB Markets, DZ Bank, Helaba, HSBC, Mediobanca, Mizuho, RBI, SMBC Nikko, Societe Generale CIB, and West LB.

Fresenius is a familiar issuer for the European high-yield market, and its bonds are tightly held and rarely trade, sources noted. The existing bonds all yield less than 5%: the 8.75% notes due 2015 yield to maturity 3.5%; the 5% notes due 2013 yield to maturity 1.33%; and the 5.5% notes due 2016 yield to maturity 3.6%.

Fresenius is an international healthcare group that provides products and services for dialysis, hospital and outpatient medical care. Proceeds from the current offering will be used for acquisitions, including the acquisition of Damp Group, as well as for refinancing short-term debt and general corporate purposes. – Sohko Fujimoto