The placement comprises two tranches, both of which have a maturity of 60 years. The first tranche amounting to €500 million pays a coupon of 1.625% and includes an early redemption option for Merck KGaA after 5.5 years. The second tranche of €1 billion pays a coupon of 2.875 %, including an early redemption option after 10 years.
“We had secured a solid financing structure for the proposed acquisition of Versum right from the start. Today’s placement of hybrid capital shows that we remain committed to supporting our credit rating and a conservative financial policy,” said Marcus Kuhnert, member of the Executive Board and CFO of Merck KGaA.
The placement was significantly oversubscribed and generated strong international demand, with the majority being placed in France, the UK and Germany.