Merck KGaA Closes $2.6 Billion Refinancing

Published: Mar 27, 2013

Darmstadt, March 27, 2013 - Merck announced today the successful closing of a € 2 billion syndicated loan facility. The syndicated loan was underwritten by an international group of banks and has a tenor of five years with extension options for a total tenor of seven years. It replaces an existing, unused € 2 billion loan facility that would have expired in 2014. The early renewal of the syndicated loan has enabled the Group to secure its long-term financing.

Merck coordinated the transaction itself. Nineteen banks joined the syndicated loan facility, which was heavily oversubscribed and led to a corresponding scale-back of loan commitments. "The closing of the new loan facility shows that Merck has a very good reputation among its banks owing to its strong position, and that a long-term loan commitment can be obtained with good terms and conditions despite the current financial market turbulence," said Matthias Zachert, CFO of the Merck Group.

The loan facility is available for general corporate purposes and can also be used for growth projects.

In recent months, the rating agencies Standard & Poor's and Moody's both upgraded Merck by one notch. Merck now has an A- rating from S&P and a Baa1 rating from Moody's. Both ratings are with a stable outlook.

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