Merck Launches 7-Part Bond Sale to Fund $6.7 Billion Terns Acquisition
Updated
Updated · Bloomberg · May 18
Merck Launches 7-Part Bond Sale to Fund $6.7 Billion Terns Acquisition
3 articles · Updated · Bloomberg · May 18
Merck has started an investment-grade bond offering in as many as seven tranches to help pay for its $6.7 billion purchase of Terns Pharmaceuticals.
The longest piece — a 30-year bond — is being discussed at about 1.05 percentage points above Treasuries, according to a person familiar with the matter.
The financing move ties directly to Merck's effort to complete the Terns deal, using debt markets rather than relying solely on existing cash.
As Merck bets big on new drugs, can its debt-fueled M&A strategy succeed in a high-interest rate, inflationary economic environment?
Merck's new leukemia drug shows 'unprecedented' results. Can this $6.7 billion asset truly become the company's next blockbuster medicine?