S&P provides BBB+ to Merck notes

Standard & Poor's said it assigned its BBB+ long-term issue rating to the proposed long-dated, optionally deferrable and subordinated hybrid notes to be issued by Merck KGaA (A/negative/A-1).

Merck is considering issuing two tranches, NC6.5 and NC10, maturing in 2074, of hybrid subordinated resettable fixed-rate notes in benchmark sizes to finance the acquisition of Sigma Aldrich.

The proposed notes have a non-call period from issuance of 6½ for tranche NC6.5 and 10 years for tranche NC10. The notes are callable thereafter and are optionally deferrable and subordinated.

The notes can be redeemed early in the case of an "acquisition event," which would occur if Merck failed to close the acquisition of Sigma Aldrich.

The completion and size of the placements remain subject to market conditions and confirmation by Merck.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.