By Andrea Heisinger
New York, May 16 - Merck & Co., Inc. gave terms of its $6.5 billion sale of notes (A2/AA/A+) in six tranches in an FWP filing with the Securities and Exchange Commission.
There was $500 million of three-year floating-rate notes priced at par to yield Libor plus 19 basis points.
A second part was $1 billion of 0.7% three-year notes sold at 99.973 to yield 0.709% with a spread of Treasuries plus 32 bps. There is a make-whole call at Treasuries plus 5 bps.
The third part was $1 billion of five-year floaters sold at par to yield Libor plus 36 bps.
A $1 billion tranche of 1.3% five-year notes was priced at 99.769 to yield 1.348% with a spread of 52 bps over Treasuries. The notes have a make-whole call at Treasuries plus 10 bps.
The $1.75 billion of 2.8%10-year bonds sold at 99.913 to yield 2.81% with a spread of Treasuries plus 87 bps. There is a make-whole call at Treasuries plus 15 bps.
Finally, there was $1.25 billion of 4.15% 30-year bonds priced at 99.694 to yield 4.168% with a spread of Treasuries plus 102 bps. The bonds have a make-whole call at Treasuries plus 15 bps.
The bookrunners were BNP Paribas Securities Corp., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC.
Proceeds will be used to repurchase common stock and for general corporate purposes, including repayment of outstanding commercial paper and upcoming debt maturities.
Merck was last in the U.S. bond market with a $2.5 billion offering in three tranches on Sept. 10, 2012. That sale included a 1.1% note due 2018 priced at 50 bps over Treasuries, a 2.4% 10-year maturity sold at Treasuries plus 75 bps and a 3.6% 30-year bond priced at 90 bps over Treasuries.
The global health care company is based in Whitehouse Station, N.J.
| Issuer: | Merck & Co., Inc.
|
| Issue: | Notes
|
| Amount: | $6.5 billion
|
| Bookrunners: | BNP Paribas Securities Corp., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Trade date: | May 15
|
| Settlement date: | May 20
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: AA
|
| Fitch: A+
|
|
|
| Three-year floaters
|
| Amount: | $500 million
|
| Maturity: | May 18, 2016
|
| Coupon: | Libor plus 19 bps
|
| Price: | Par
|
| Yield: | Libor plus 19 bps
|
| Call: | Non-callable
|
|
|
| Three-year fixed-rate notes
|
| Amount: | $1 billion
|
| Maturity: | May 18, 2016
|
| Coupon: | 0.7%
|
| Price: | 99.973
|
| Yield: | 0.709%
|
| Spread: | Treasuries plus 32 bps
|
| Call: | Make-whole at Treasuries plus 5 bps
|
|
|
| Five-year floaters
|
| Amount: | $1 billion
|
| Maturity: | May 18, 2018
|
| Coupon: | Libor plus 36 bps
|
| Price: | Par
|
| Yield: | Libor plus 36 bps
|
| Call: | Non-callable
|
|
|
| Five-year fixed-rate notes
|
| Amount: | $1 billion
|
| Maturity: | May 18, 2018
|
| Coupon: | 1.3%
|
| Price: | 99.769
|
| Yield: | 1.348%
|
| Spread: | Treasuries plus 52 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
|
|
| 10-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | May 18, 2023
|
| Coupon: | 2.8%
|
| Price: | 99.913
|
| Yield: | 2.81%
|
| Spread: | Treasuries plus 87 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
|
|
| 30-year bonds
|
| Amount: | $1.25 billion
|
| Maturity: | May 18, 2043
|
| Coupon: | 4.15%
|
| Price: | 99.694
|
| Yield: | 4.168%
|
| Spread: | Treasuries plus 102 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
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