The listed hospital group RHÖN-KLINIKUM AG is issuing a bond for €110m on the capital market to refinance the recent rise in short-term liabilities in connection with the nine facilities acquired since the beginning of the year and the Miltenberg/Erlenbach facilities added as per 1 July 2005. The transaction is slated for conclusion on 7 July 2005. The order book for the bond, managed and placed by HVB, has met with an ample oversubscription although the bond was not offered in the US. With an interest rate of 3.525% and a term of five years, the conditions of the bond are extremely attractive. 

The bond saw a very good uptake with both national and international bond investors visited in the run-up to placement. Orders have come from Germany and abroad, with Europe ex Germany accounting for roughly 30%.

The coupon will pay a nominal rate of 3.5%. Otherwise conditions customary on the market have been provided. These include a change-of-control clause providing for a special termination right of the bondholder in the event of a takeover and in this connection a resulting downgrade to non-investment grade. The bond is senior unsecured.

“The bond will allow us to refinance the end-Q1/2005 rise in our short-term liabilities, securing the favourable conditions medium term; at the same time we have thereby organised the requisite scope for further growth”, explained Eugen Münch, chairman of the Board of Management of RHÖN-KLINIKUM AG. The bond was drawn up in accordance with the new Prospectus Directive (binding for securities issued from 1 July 2005).

“As with the placement of the block of RHÖN-KLINIKUM AG shares held by it, HVB has also done a very good job here“, Münch added.