Merck (MRK) Provides Update on Merger Financing

Merck (NYSE: MRK) provided an update on the status of credit facilities that will be used to finance its recently announced agreement to merge with Schering-Plough Corporation (NYSE: SGP). Merck and JPMorgan, as lead arranger, have completed primary syndication of $7 billion of new Merck credit facilities with commitments from eight additional co-arrangers -- Bank of America, BNP Paribas, Citi, Credit Suisse, HSBC, The Royal Bank of Scotland plc, Santander and UBS. In addition, Merck has secured commitments for the amendment of its existing $1.5 billion revolving credit facility that will allow the facility to remain in place after the merger.

Merck noted that finalizing primary syndication is an important step in the process of the completion of the general syndication of the credit facilities. Merck, JPMorgan and the co-arrangers are working together toward completion of general syndication in the coming weeks.

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