JP Morgan goes solo with $8.5bn Merck loan
JP Morgan has underwritten $8.5bn of loans to back US pharmaceutical group Merck’s $41.1bn takeover of Schering-Plough, a local rival. The facility is further evidence that banks are becoming more willing to provide corporate borrowers large amounts of new debt.
Merck has secured a $3bn one year bridge facility and a $5.5bn revolver, both of which are set to be syndicated imminently.
Merck, rated Aa3/AA-/AA-, said that it would issue bonds to take out the bridge loan and reduce the revolver.
Merck and Schering-Plough announced the takeover on Monday morning.
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