Investment idea

Reverse Convertible with Autocall on Fresenius Medical Care

The Bavarian medical technology provider plays a leading role in the globally growing dialysis market. Here, the FMC testing of dialysis machines takes place at the Schweinfurt plant. FRESENIUS

Our latest investment idea, with a term of 18 months and a coupon of four percent, offers attractive returns with a manageable investment horizon. Fresenius Medical Care from Bavaria is one of the leading specialists in dialysis. Following its low at the end of 2018, the share price has recently corrected.

In a period of sideways-trending equity markets, classic equity bonds with express provide attractive yields with a manageable investment horizon. In addition, classic reverse convertible bonds offer real downward protection. With our structure, from the 6th month onwards there is a quarterly chance of early redemption through a falling redemption barrier.

Fresenius Medical Care AG Co KGaA is a leading global provider of dialysis products and services for the medical care of people with chronic and acute kidney failure. The company supports the two main treatment methods, hemodialysis and peritoneal dialysis. Fresenius Medical Care AG Co KgaA is recommended to buy or hold in 27 out of 27 available analyst estimates (source: Bloomberg). Should a delivery of shares take place at the end of the term, the shares would be delivered at a discount of 20% to the starting level.

Share price Fresenius Medical Care AG in Euro 5 years

After reaching an all-time high of EUR 93.84 in January 2018, the share price of the dialysis specialist dipped to EUR 55.04 at the end of 2018 and has recovered since then.

How the reverse convertible bond with Express works

The reverse convertible express on Fresenius Medical Care AG Co KGaA is a bearer bond of BNP Paribas Emissions- und Handelsgesellschaft mbH, Frankfurt am Main, with a term until August 28, 2020 at the latest, except for an early redemption.

Payment of interest

A guaranteed interest rate of EUR 10.00 (4.00% p.a.) will be paid quarterly until premature repayment, at most until final maturity.

Early payback

On the respective observation day, it is examined whether the Fresenius Medical Care AG Co KGaA share is at or above the corresponding repayment barrier. If this is the case, the certificate is repaid early at par value. Otherwise, the certificate will continue until the next observation day.

End of term

A final fixation will be performed to determine whether the Fresenius Medical Care AG Co KGaA share is quoted above the strike price of 80% of the initial fixation. If this is the case, the nominal amount will be paid per certificate, otherwise the physical delivery of the Fresenius Medical Care AG Co KGaA share will take place at the subscription ratio (cash settlement for fractions).

Reverse Convertible with Autocall

Underlying Fresenius Medical Care AG Co KGaA
Coupon 4,00% p.a.
Maturity 18 Months
Issuer BNP Paribas Emissions- und Handelsgesellschaft mbH, Frankfurt am Main
Coupon barrier 80%
Issue price EUR 1000,-
Subscription period Until 21th of February 2019, early closing possible
Curency Quanto
Expresslevel After 6 months = 100% / afterwards quarterly 3% falling

Your contact person

Christopher Kumpas

CEO Picard Angst MEA

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