Organon to launch $3 billion equivalent of term loans on Wednesday

By Sara Rosenberg

New York, March 23 – Organon & Co. is set to hold a lender call at 11 a.m. ET on Wednesday to launch $3 billion equivalent of term loans, according to a market source.

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., BofA Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and HSBC Securities (USA) Inc. are the leads on the deal.

The debt is split between a $2 billion seven-year term loan and a $1 billion equivalent euro seven-year term loan.

Price talk on the U.S. term loan is Libor plus 300 basis points with a 0.5% Libor floor and an original issue discount of 99 to 99.5, and talk on the euro term loan is Euribor plus 300 bps with a 0% floor and a discount of 99 to 99.5, the source said.

Both term loans have 101 soft call protection for six months.

Commitments are due at 11 a.m. ET on April 7, the source added.

Proceeds will be used to help fund the creation of the company through the spinoff of Merck’s women’s health, legacy brands and biosimilars businesses.

Organon is a Jersey City, N.J.-based pharmaceutical company that develops and delivers health solutions through a portfolio of prescription therapies within women’s health, biosimilars and established brands.

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