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
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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04.02.2019 © Picard Angst AG. All rights reserved.