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24. Trust preferred securities

Fresenius Medical Care issued trust preferred securities through Fresenius Medical Care Capital Trusts, statutory trusts organized under the laws of the State of Delaware, United States. Fresenius Medical Care AG & Co. KGaA (FMC-AG & Co. KGaA) owned all of the common securities of these trusts. The sole asset of each trust was a senior subordinated note of FMC-AG & Co. KGaA or a wholly-owned subsidiary of FMC-AG & Co. KGaA. FMC-AG & Co. KGaA, Fresenius Medical Care Deutschland GmbH (FMC D-GmbH) and Fresenius Medical Care Holdings, Inc. (FMCH) have guaranteed payment and performance of the senior subordinated notes to the respective Fresenius Medical Care Capital Trusts. The trust preferred securities were guaranteed through a series of undertakings by FMC-AG & Co. KGaA, FMC D-GmbH and FMCH.

The trust preferred securities entitled the holders to distributions at a fixed annual rate of the stated amount and were mandatorily redeemable after 10 years.

On June 15, 2011, Fresenius Medical Care redeemed the trust preferred securities that became due on that date and that were issued in 2001 by Fresenius Medical Care Capital Trust IV and V in the amount of US$225 million and €300 million, respectively, primarily with funds obtained under existing credit facilities.

The trust preferred securities as of December 31 were as follows:


  Year issued Stated amount Interest rate Mandatory redemption date 2011
€ in millions
2010
€ in millions
Fresenius Medical Care Capital Trust IV 2001 US$225 million 7⅞ % June 15, 2011 0 168
Fresenius Medical Care Capital Trust V 2001 €300 million 7⅜ % June 15, 2011 0 300
Trust preferred securities         0 468

  Year issued Stated amount Interest rate Mandatory redemption date 2011
€ in millions
2010
€ in millions
Fresenius Medical Care Capital Trust IV 2001 US$225 million 7⅞ % June 15, 2011 0 168
Fresenius Medical Care Capital Trust V 2001 €300 million 7⅜ % June 15, 2011 0 300
Trust preferred securities         0 468

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