Drugmaker Merck & Co., Whitehouse Station, N.J., will execute a $4.25 billion public offering of unsecured senior notes, according to a news release. The company will use the proceeds for either its planned purchase of Kenilworth, N.J.-based pharmaceutical company Schering-Plough Corp. or to settle claims connected with its long-running Vioxx pain-reliever lawsuit.
Merck to offer $4.25 billion in senior notes
Repayment of the four-part debt-offering is structured over 30 years, with the bulk of the notes$3.5 billionto be repaid by 2019. The offering is expected to close on June 25.
News of the offering follows an announcement that the Federal Trade Commission has requested additional information from Merck and Schering-Plough about the proposed acquisition. Merck officials said in a news release that the offering is not contingent upon approval of the merger by shareholders or regulatory agencies. If approved, the Schering-Plough acquisition is expected to be completed during the fourth quarter of this year.
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