Fresenius Medical Care US Finance III, Inc. 3.750% Notes Due 2029 Guaranteed on an Unsubordinated Basis by Fresenius Medical Care AG & Co
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LISTING PROSPECTUS NOT FOR GENERAL DISTRIBUTION IN THE UNITED STATES $500,000,000 Fresenius Medical Care US Finance III, Inc. 3.750% Notes due 2029 Guaranteed on an unsubordinated basis by Fresenius Medical Care AG & Co. KGaA and Fresenius Medical Care Holdings, Inc. Fresenius Medical Care US Finance III, Inc. (Issuer) issued on June 20, 2019 (Issue Date) $500,000,000 aggregate principal amount of its 3.750% notes due 2029 (Notes). The Issuer will pay interest on the Notes semi-annually on June 15 and De- cember 15 of each year, commencing December 15, 2019. The Notes will mature on June 15, 2029. The Notes are unsubordinated obligations of the Issuer and rank equally with all of its existing and future unsubordinated unsecured indebtedness. The Notes are guaranteed on an unsubordinated basis (together, Note Guarantees) by Fresenius Medical Care AG & Co. KGaA (Company) as well as Fresenius Medical Care Holdings, Inc. (FMCH and, together with the Company, Guarantors). Other subsidiaries of the Company do not guarantee the Notes. The Notes and the Note Guaran- tees are effectively subordinated to all secured indebtedness of the Issuer and the Guarantors to the extent of the value of the collateral securing such indebtedness and structurally subordinated to all liabilities of the Company’s subsidiaries that are not guaranteeing the Notes. The Notes are subject to the redemption provisions as set out elsewhere in this listing pro- spectus (Prospectus). The Prospectus constitutes a prospectus within the meaning of Article 5(3) of the Directive 2003/71/EC of the European Parliament and of the Council of November 4, 2003 (as amended, inter alia, by Directive 2010/73/EU of the European Par- liament and of the Council of November 24, 2010) (Prospectus Directive) and has been drafted in accordance with the Lux- embourg law of July 10, 2005 on prospectuses for securities, as amended, (Loi du 10 juillet 2005 relative aux prospectus pour valeurs mobilières) (Luxembourg Prospectus Law), which implements the Prospectus Directive into Luxembourg law. The Prospectus has been approved by the Commission de Surveillance du Secteur Financier (CSSF), in its capacity as compe- tent authority under the Luxembourg Prospectus Law, and will be published in electronic form on the website of the Lux- embourg Stock Exchange (www.bourse.lu). By approving the Prospectus, the CSSF gives no undertaking as to the economic or financial opportuneness of the transaction or the quality and solvency of the Issuer in line with the provisions of Article 7(7) of the Luxembourg Prospectus Law. Application has been made to list the Notes on the official list of the Luxembourg Stock Exchange and to admit the Notes to trading on the regulated market of the Luxembourg Stock Exchange, a market appearing on the list of regulated markets issued by the European Commission pursuant to Directive 2014/65/EU of the European Parliament and of the Council of May 15, 2014 on markets in financial instruments, as amended (MiFID II). Investing in the Notes involves risks. See “Risk Factors” beginning on page 28. ___________________________________ Issue Price: 98.461% plus accrued interest from the Issue Date Delivery of the Notes in book-entry form was made through The Depository Trust Company (DTC), including Euroclear Bank S.A./ N.V. as operator of the Euroclear System and Clearstream Banking, société anonyme, expected on or about June 20, 2019. ___________________________________ The Notes and the Note Guarantees have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (Securities Act). The Notes may not be offered or sold within the United States of America (United States or U.S.) or to, or for the account or benefit of, U.S. persons, except to qualified institutional buyers in reliance on the ex- emption from registration provided by Rule 144A under the Securities Act (Rule 144A) and to certain non-U.S. persons in offshore transactions in reliance on Regulation S under the Securities Act (Regulation S). You are hereby notified that sellers of the Notes may be relying on the exemption from the provisions of Section 5 of the Securities Act provided by Rule 144A. See “Notice to Investors” for additional information about eligible offerees and transfer restrictions. Joint Lead Managers and Bookrunners BofA Merrill Lynch Citigroup Wells Fargo Securities Barclays Deutsche Bank Securities HSBC Co-Lead Managers Sun Trust Robinson DNB Markets RBC Capital Markets SMBC Nikko TD Securities Humphrey The date of the Prospectus is June 21, 2019. 1 You should rely only on the information contained in the Prospectus. We have not authorized anyone to provide you with any information that is different or represent anything about us or the Notes that is not contained in the Prospectus. If given or made, any such other information or representation should not be relied upon as having been authorized by us or BofA Securities, Inc., Citigroup Global Markets Inc., Wells Far- go Securities, LLC, Barclays Capital Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., DNB Mar- kets, Inc., RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc., and TD Securities (USA) LLC (collectively, the Initial Purchasers). We are not, and the Initial Purchasers are not, making an offer to sell the Notes in any jurisdiction where an offer or sale is not permitted. You should not assume that the information contained in the Prospectus is accurate as of any date other than the date hereof. The business, financial condition, results of operations and prospects of the Issuer or the Guarantors or any of their subsidiaries may have changed since that date. TABLE OF CONTENTS Table of Contents ......................................................................................................................... 2 RESPONSIBILITY STATEMENT ........................................................................................................ 3 NOTICE TO INVESTORS ................................................................................................................. 3 CERTAIN DEFINED TERMS ............................................................................................................. 8 FORWARD-LOOKING STATEMENTS ............................................................................................... 9 MARKET AND INDUSTRY DATA ................................................................................................... 11 PRESENTATION OF FINANCIAL INFORMATION AND OTHER DATA ................................................ 11 CERTAIN DIFFERENCES BETWEEN U.S. GAAP AND IFRS FINANCIAL INFORMATION ........................ 11 OVERVIEW ................................................................................................................................. 13 RISK FACTORS ............................................................................................................................ 29 THE ISSUER ................................................................................................................................ 51 THE GUARANTORS ..................................................................................................................... 53 USE OF PROCEEDS ...................................................................................................................... 57 CAPITALIZATION ......................................................................................................................... 58 SUMMARIZED HISTORICAL CONSOLIDATED FINANCIAL DATA AND OTHER DATA ......................... 60 SUMMARIZED FINANCIAL DATA RELATING TO THE ISSUER AND FMCH ........................................ 63 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS .............................................................................................................................. 64 BUSINESS OF THE GROUP .......................................................................................................... 118 MANAGEMENT.......................................................................................................................... 176 DESCRIPTION OF CERTAIN INDEBTEDNESS ................................................................................. 192 DESCRIPTION OF THE NOTES ...................................................................................................... 195 BOOK-ENTRY, DELIVERY AND FORM .......................................................................................... 216 TAXATION CONSIDERATIONS ..................................................................................................... 222 UNDERWRITING AND SALE OF THE NOTES ................................................................................. 231 INCORPORATION BY REFERENCE ................................................................................................ 234 2 NAMES AND ADDRESSES ........................................................................................................... 240 RESPONSIBILITY STATEMENT The Issuer and the Guarantors assume responsibility for the information contained or incorporated by reference in the Prospectus and hereby declare that, having taken all reasonable care to ensure that such is the case, the information contained or incorporated by reference in the Prospectus is, to the best of their knowledge, in accordance with the facts and contains no omission likely to affect