Merck begins one-week tender for $850 million of eight note series

By Susanna Moon

Chicago, Nov. 6 – Merck said it is tendering for up to $850 million of eight series of notes until 5 p.m. ET on Nov. 13.

The notes covered by the offers are as follows, listed in order of priority acceptance levels with pricing to be set using a reference security plus a fixed spread for a hypothetical total purchase price for each $1,000 principal amount:

• $524,052,000 of 6.55% senior notes due 2037 with pricing to be set using the 3% Treasury note due May 15, 2047 plus 55 basis points for a hypothetical total purchase price of $1,455.37;

• $418,907,000 of 5.85% notes due 2039 with pricing to be set using the 3% Treasury note due May 15, 2047 plus 60 bps for a hypothetical total purchase price of $1,367.33;

• $717,611,000 of 6.5% senior notes due 2033 with pricing to be set using the 3% Treasury note due May 15, 2047 plus 45 bps for a hypothetical total purchase price of $1,399.20;

• $357,745,000 of 5.95% debentures due 2028 with pricing to be set using the 2.25% Treasury note due Aug. 15, 2027 plus 45 bps for a hypothetical total purchase price of $1,296.57;

• $372,130,000 of 5.75% notes due 2036 with pricing to be set using the 3% Treasury note due May 15, 2047 plus 50 bps for a hypothetical total purchase price of $1,338.71;

• $326,507,000 of 6.4% debentures due 2028 with pricing to be set using the 2.25% Treasury note due Aug. 15, 2027 plus 40 bps for a hypothetical total purchase price of $1,324.42;

• $153,077,000 of 6.3% debentures due 2026 with pricing to be set using the 2.25% Treasury note due Aug. 15, 2027 plus 40 bps for a hypothetical total purchase price of $1,256.29; and

• $79,132,000 of 5.76% notes due 2037 with pricing to be set using the 3% Treasury note due May 15, 2047 plus 65 bps for a hypothetical total purchase price of $1,320.46.

The hypothetical purchase price was set using a reference yield at 11 a.m. ET on Nov. 3 assuming a settlement date of Nov. 15.

Holders also will receive accrued interest to but excluding the settlement date.

Tendered notes may be withdrawn before the end of the offer.

Settlement is expected to occur on Nov. 15.

Notes tendered under guaranteed delivery procedures will be accepted for purchase on Nov. 16.

BofA Merrill Lynch (888 292-0070 or 980 387-3907) is the dealer manager. Global Bondholder Services Corp. (866 470-3800, 212 430-3774 or gbsc-usa.com/Merck/) is the information agent and the tender agent.

Merck is a biopharmaceutical company based in Kenilworth, N.J.

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