Merck (NYSE:MRK), known as MSD outside the United States and
Canada, announced today the commencement of offers to purchase
(collectively, the “Offers”) any and all of the outstanding notes
listed in the table below (collectively, the “Notes”). The Offers
are being made upon, and are subject to, the terms and conditions
set forth in the Offer to Purchase, dated Nov. 6, 2017 (the “Offer
to Purchase”).
The following table sets forth some of the terms of the Offers,
which are more fully set out in the Offer to Purchase:
Title of
Notes
CUSIP
Number
Principal Amount
Outstanding
Bloomberg Reference
Page
U.S. Treasury Reference
Security
Acceptance Priority
Level
Fixed
Spread (Basis
Points)
Hypothetical
Total
Consideration(1)
6.55% Senior Notes due 2037 806605AH4 $524,052,000 FIT1 3.000% due
05/15/47 1 +55 $1,455.37 5.85% Notes due 2039 589331AQ0
$418,907,000 FIT1 3.000% due 05/15/47 2 +60 $1,367.33 6.50% Senior
Notes due 2033 806605AG6 $717,611,000 FIT1 3.000% due 05/15/47 3
+45 $1,399.20 5.95% Debentures due 2028 589331AE7 $357,745,000 FIT1
2.250% due 08/15/27 4 +45 $1,296.57 5.75% Notes due 2036 589331AM9
$372,130,000 FIT1 3.000% due 05/15/47 5 +50 $1,338.71 6.40%
Debentures due 2028 589331AD9 $326,507,000 FIT1 2.250% due 08/15/27
6 +40 $1,324.42 6.30% Debentures due 2026 589331AC1 $153,077,000
FIT1 2.250% due 08/15/27 7 +40 $1,256.29 5.76% Notes due 2037
58933NAL3 $79,132,000 FIT1 3.000% due 05/15/47 8 +65 $1,320.46
_____________________
(1) Per $1,000 principal amount of Notes, assuming that the
Reference Yield (as defined below) had been measured at 11:00 a.m.,
New York City time, on Nov. 3, 2017 and assuming a hypothetical
settlement date of Nov. 15, 2017. The Actual Reference Yield (as
defined in the Offer to Purchase) will be determined in accordance
with the terms of the Offers. See the Offer to Purchase.
The Offers will expire at 5:00 p.m. (Eastern time) on Nov. 13,
2017 (such date and time with respect to an Offer, as the same may
be extended with respect to such Offer, the “Expiration Date”).
Notes tendered may be validly withdrawn at any time at or prior to
5:00 p.m. (Eastern time) on Nov. 13, 2017 (such date and time with
respect to an Offer, as the same may be extended with respect to
such Offer, the “Withdrawal Date”), but not thereafter. The
“Settlement Date” with respect to an Offer will be promptly
following the Expiration Date and is expected to be Nov. 15, 2017,
which is the second business day after the Expiration Date. The
“Guaranteed Delivery Settlement Date” with respect to Notes validly
tendered pursuant to the guaranteed delivery procedures after the
Expiration Date and at or prior to the Guaranteed Delivery Date (as
defined in the Offer to Purchase) and accepted for purchase will be
the first business day after the Guaranteed Delivery Date and is
expected to be Nov. 16, 2017.
Upon the terms and subject to the conditions set forth in the
Offer to Purchase, the consideration for each $1,000 principal
amount of each series of Notes validly tendered at or prior to the
Expiration Date or the Guaranteed Delivery Date pursuant to the
guaranteed delivery procedures, and accepted for purchase (the
“Total Consideration”), will be payable in cash and will be
determined in accordance with standard market practice, as
described in the Offer to Purchase, that equates to a yield to
maturity equal to the applicable reference yield plus the
applicable fixed spread, which reference yield shall be based on
the bid-side price of the applicable Reference U.S. Treasury
Security specified in the above table at 11:00 a.m. (Eastern time)
on Nov. 13, 2017 (such time and date, as the same may be extended
with respect to such Offer, the “Price Determination Date”). Merck
will announce the applicable Total Consideration for each series of
Notes as soon as practicable after they are determined by the
Dealer Manager on the Price Determination Date.
In addition to the applicable Total Consideration, holders whose
Notes are accepted for purchase will be paid accrued and unpaid
interest on such Notes to, but not including, the Settlement Date.
Interest will cease to accrue on the Settlement Date for all Notes
accepted, including those tendered through the guaranteed delivery
procedures.
Merck’s obligation to accept Notes tendered in the Offers is
subject to the satisfaction of certain conditions described in the
Offer to Purchase, including the Complete Purchase Condition (as
defined below). Merck reserves the right, subject to applicable
law, to waive any and all conditions to any Offer.
Merck’s obligation to accept and pay for any Notes of any series
validly tendered is subject to the terms and conditions set forth
in the Offer to Purchase, as it may be amended or supplemented,
including, but not limited to, with respect to each series of
Notes, $850,000,000 (the “Maximum Amount”) being sufficient to fund
the aggregate Total Consideration (as defined in the Offer to
Purchase) of all Notes of such series (after funding the aggregate
Total Consideration of all validly tendered and not validly
withdrawn Notes of each series having a higher “Acceptance Priority
Level” as set forth in the table above (with 1 being the highest
Acceptance Priority Level)) tendered in the applicable Offer (the
“Complete Purchase Condition”). If the Complete Purchase Condition
is not satisfied with respect to any series of Notes subject to the
Offers, then Merck will not accept for purchase any Notes of that
series whether or not validly tendered. Accordingly, upon the terms
and subject to the conditions of the Offer, Merck will accept for
purchase all Notes of each series tendered in accordance with the
applicable Acceptance Priority Level so long as the Maximum Amount
is equal to or greater than the aggregate Total Consideration for
all tendered Notes of such series and each series having a higher
Acceptance Priority Level as further provided in the Offer to
Purchase.
Merck has retained BofA Merrill Lynch to act as dealer manager
(the “Dealer Manager”) for the Offers. Questions regarding terms
and conditions of the Offers should be directed to BofA Merrill
Lynch at (888) 292-0070 (toll-free) or (980) 387-3907
(collect).
Global Bondholder Services Corporation will act as the
Information Agent and the Tender Agent for the Offers. Questions or
requests for assistance related to the Offers or for additional
copies of the Offer to Purchase may be directed to Global
Bondholder Services Corporation at (866) 470-3800 (toll free) or
(212) 430-3774 (collect). You may also contact your broker, dealer,
commercial bank, trust company or other nominee for assistance
concerning the Offers. The Offer to Purchase can be accessed at the
following link: http://www.gbsc-usa.com/Merck/.
If Merck terminates any Offer with respect to one or more series
of Notes, it will give prompt notice to the Tender Agent, and all
Notes tendered pursuant to such terminated Offer will be returned
promptly to the tendering holders thereof. With effect from such
termination, any Notes blocked in DTC will be released.
Holders are advised to check with any bank, securities broker
or other intermediary through which they hold Notes as to when such
intermediary needs to receive instructions from a holder in order
for that holder to be able to participate in, or (in the
circumstances in which revocation is permitted) revoke their
instruction to participate in the Offers before the deadlines
specified herein and in the Offer to Purchase. The deadlines set by
each clearing system for the submission and withdrawal of tender
instructions will also be earlier than the relevant deadlines
specified herein and in the Offer to Purchase.
This press release is for informational purposes only. This
press release is not an offer to purchase or a solicitation of an
offer to purchase any Notes. The Offers are being made solely
pursuant to the Offer to Purchase. The Offers are not being made to
holders of Notes in any jurisdiction in which the making or
acceptance thereof would not be in compliance with the securities,
blue sky or other laws of such jurisdiction. In any jurisdiction in
which the securities laws or blue sky laws require the Offers to be
made by a licensed broker or dealer, the Offers will be deemed to
be made on behalf of Merck by the Dealer Manager or one or more
registered brokers or dealers that are licensed under the laws of
such jurisdiction.
About Merck
For more than a century, Merck, a leading global
biopharmaceutical company known as MSD outside of the United States
and Canada, has been inventing for life, bringing forward medicines
and vaccines for many of the world’s most challenging diseases.
Through our prescription medicines, vaccines, biologic therapies
and animal health products, we work with customers and operate in
more than 140 countries to deliver innovative health solutions. We
also demonstrate our commitment to increasing access to health care
through far-reaching policies, programs and partnerships. Today,
Merck continues to be at the forefront of research to advance the
prevention and treatment of diseases that threaten people and
communities around the world - including cancer, cardio-metabolic
diseases, emerging animal diseases, Alzheimer’s disease and
infectious diseases including HIV and Ebola. For more information,
visit www.merck.com and connect with us on Twitter,
Facebook, Instagram, YouTube and LinkedIn.
Forward-Looking Statement of Merck & Co., Inc.,
Kenilworth, N.J., USA
This news release includes “forward-looking statements” within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. Such statements
may include, but are not limited to, Merck’s ability to complete
the offering. These statements are based upon the current beliefs
and expectations of Merck’s management and are subject to
significant risks and uncertainties. If underlying assumptions
prove inaccurate or risks or uncertainties materialize, actual
results may differ materially from those set forth in the
forward-looking statements.
Risks and uncertainties include but are not limited to, general
industry conditions and competition; general economic factors,
including interest rate and currency exchange rate fluctuations;
the impact of pharmaceutical industry regulation and health care
legislation in the United States and internationally; global trends
toward health care cost containment; technological advances, new
products and patents attained by competitors; challenges inherent
in new product development, including obtaining regulatory
approval; the company’s ability to accurately predict future market
conditions; manufacturing difficulties or delays; financial
instability of international economies and sovereign risk;
dependence on the effectiveness of the company’s patents and other
protections for innovative products; and the exposure to
litigation, including patent litigation, and/or regulatory
actions.
Merck undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events or otherwise. Additional factors that could cause
results to differ materially from those described in the
forward-looking statements can be found in Merck’s 2016 Annual
Report on Form 10-K and the company’s other filings with the SEC
available at the SEC’s Internet site (www.sec.gov).
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version on businesswire.com: http://www.businesswire.com/news/home/20171106005798/en/
MerckMedia:Claire Gillespie, 267-305-0932orInvestors:Amy Klug,
908-740-1898
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