Merck takes in tenders for $584.7 million of eight series in offer

By Susanna Moon

Chicago, Nov. 14 – Merck said investors had tendered $584.7 million principal amount of eight series of notes in the one-week tender that ended at 5 p.m. ET on Nov. 13.

Merck will pay a total purchase price of about $800 million to settle the offers excluding interest, according to a company news release on Tuesday.

The company said on Nov. 6 that it was tendering for up to $850 million of the notes.

The tender results are as follows with the notes listed in order of priority acceptance levels with pricing set using a reference security plus a fixed spread for a purchase price for each $1,000 principal amount and total payment price:

• $156,353,000 of $524,052,000 outstanding 6.55% senior notes due 2037 with pricing based on the 3% Treasury note due May 15, 2047 plus 55 basis points for purchase price of $1,448.21 and total payment price of $226,431,978;

• $146,509,000 of $418,907,000 outstanding 5.85% notes due 2039 with pricing based on the 3% Treasury note due May 15, 2047 plus 60 bps for purchase price of $1,360.07 and total payment price of $199,262,496;

• $65,917,000 of $717,611,000 outstanding 6.5% senior notes due 2033 with pricing based on the 3% Treasury note due May 15, 2047 plus 45 bps for purchase price of $1,393.22 and total payment price of $91,836,883;

• $49,463,000 of $357,745,000 outstanding 5.95% debentures due 2028 with pricing based on the 2.25% Treasury note due Aug. 15, 2027 plus 45 bps for purchase price of $1,291.18 and total payment price of $63,865,636;

• $31,323,000 of $372,130,000 outstanding 5.75% notes due 2036 with pricing based on the 3% Treasury note due May 15, 2047 plus 50 bps for purchase price of $1,332.13 and total payment price of $41,726,308;

• $75,724,000 of $326,507,000 outstanding 6.4% debentures due 2028 with pricing based on the 2.25% Treasury note due Aug. 15, 2027 plus 40 bps for purchase price of $1,319.25 and total payment price of $99,898,887;

• $18,015,000 of $153,077,000 outstanding 6.3% debentures due 2026 with pricing based on the 2.25% Treasury note due Aug. 15, 2027 plus 40 bps for purchase price of $1,252.23 and total payment price of $22,558,923; and

• $41,401,000 of $79,132,000 outstanding 5.76% notes due 2037 with pricing based on the 3% Treasury note due May 15, 2047 plus 65 bps for purchase price of $1,313.91 and total payment price of $54,397,188.

Pricing was set at 11 a.m. ET on Nov. 13 using the bid-side yield to maturity of the Treasury reference security plus a fixed spread.

Holders also will receive accrued interest to but excluding the settlement date of 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, known as MSD outside the United States and Canada, is a biopharmaceutical company based in Kenilworth, N.J.

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