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Merck prices tender offers for $4.76 billion of eight note series
By Susanna Moon
Chicago, Oct. 14 Merck & Co., Inc. said it priced the tender offers for about $4.76 billion of outstanding principal amount of eight series of notes.
The tender offers were set to end at 5 p.m. ET on Oct. 14, with settlement set for Oct. 15. The offers began Oct. 6.
Pricing for each $1,000 principal amount of the first three series of notes was set at 2 p.m. ET on Oct. 14 using the 2.375% Treasury notes due Aug. 15, 2024 plus a fixed spread as follows:
$1,319.66 for the $250 million 6.3% debentures due 2026 using spread of 70 basis points;
$1,354.74 for the $500 million 6.4% debentures due 2028 using spread of 90 bps; and
$1,312.83 for the $500 million 5.95% debentures due 2028 using spread of 95 bps.
The next five series of notes were priced using the 3.375% Treasury notes due May 15, 2044 plus a fixed spread as follows:
$1,400.46 for the $1.15 billion 6.5% senior notes due 2033 using spread of 60 bps;
$1,318.65 for the $500 million 5.75% notes due 2036 using spread of 65 bps;
$1,297.21 for the $112,947,000 5.76% notes due 2037 using spread of 80 bps;
$1,420.54 for the $1 billion 6.55% senior notes due 2037 using spread of 80 bps;
$1,328.91 for the $750 million 5.85% notes due 2039 using spread of 80 bps.
Pricing was set using the bid-side yield to maturity of the U.S. Treasury reference security plus the fixed spread.
The company also will pay accrued interest to but excluding the settlement date.
The offers are conditioned on closing of the companys euro-denominated senior notes offering. Merck said it expected to fund the tender offer using proceeds from the issue.
Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106 collect) and J.P. Morgan Securities LLC (866 834-4666 or 212 834-4811 collect) are the lead dealer managers. Global Bondholder Services Corp. (866 470-4200) is the tender agent and information agent.
The health care company is based in Whitehouse Station, N.J.
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