RLPC-Fresenius' $2.65 bln acquisition loan launches-sources

LONDON, Sept 5 (Reuters) - Following a highly successful senior syndication, a loan of up to $2.65 billion backing German healthcare firm Fresenius AG's (FREG_p.DE) acquisition of US peer APP Pharmaceuticals APPX.O has launched to general syndication, banking sources said on Friday.

The deal was launched simultaneously to banks and funds this week with bank meetings scheduled in Frankfurt on Monday September 8, and in New York on Wednesday September 10.

The loan is being arranged by Credit Suisse, Deutsche Bank and JP Morgan, and is the first sizeable European crossover financing to emerge after Pernod Ricard's 11.5 billion euros financing closed in mid-June.

Following senior syndication the senior term loan portion of the deal was increased by $250 million, while a $1.65 billion subordinated bridge loan to a high yield bond was reduced to $1.3 billion.

Banking sources said the switch of funds from subordinated to senior debt means a reduction in the interest the borrower has to pay.

The loan now comprises a $1 billion, five-year term loan, a $1 billion, six-year term loan and a $450 million revolving credit facility, which may be increased by $200 million depending on the result of a best efforts syndication.

The five-year tranches pay margins of 287.5 basis points (bps) over LIBOR, while the six-year term loan B pays 350 bps.

Lenders are invited to commit $50 million or $25 million for fees of 75 bps and 50 bps respectively.

Banking sources said syndication has been boosted by S&P Ratings Services assigning a BBB- rating to the senior debt, two notches higher than the BB corporate credit rating of the group. The $1.3 billion bridge loan is rated BB+.

Fresenius is financing the acquisition of APP through senior debt, a high-yield bond, mandatory exchangeable bonds and 300 million euros of equity. (Reporting by Alasdair Reilly; Editing by Greg Mahlich)