Merck spin-off Organon launches $4.5bn bond financing

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By Owen Sanderson
08 Apr 2021

Organon, the spin-off from US pharma company Merck, has launched a bond leg of its financing, which will establish the unit as a separate firm with its own capital structure, while funding a $9bn dividend to its former parent. The firm was initially offering $4.5bn-equivalent across secured and unsecured bonds, with a bias to the deeper dollar market, but scaled this up during syndication to allow it to strip out bank debt.

Organon launched the loan leg of the financing in late March, with a $2bn dollar term loan 'B' and $1bn-equivalent euro term loan 'B', which it then followed with $2bn in dollar secured bonds and $1bn-equivalent in euros, plus $1.5bn in unsecured bonds.

The balance of the ...

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