Merck Closes on $2 Billion Notes Sale

Merck has completed a public offering of $2 billion worth of notes.
By Michael Baron ,

NEW YORK (

TheStreet

) --

Merck

(MRK) - Get Report

announced its completion of the sale of $2 billion worth of notes late Friday.

In a filing with the

Securities and Exchange Commission

after the closing bell, the Whitehouse Station, N.J.-based drug giant said it has closed on a public offering consisting of $850 million worth 2.25% notes due 2016 and $1.15 billion worth of 3.875% notes due 2021.

The stock was last quoted at $36, up a penny, on volume of around 175,000. according to

Nasdaq.com

. Year-to-date shares of the Dow component are down about 2.4%.

Merck announced the pricing of the debt sale earlier this week. The Dow component said it plans to use the proceeds for general corporate purposes. The company's debt balance stood at around $18.5 billion as of Sept. 30. On Nov. 30, Merck named Kenneth Frazier, its current president, to serve as its next CEO, succeeding Richard T. Clark, who been in the top spot since 2005. Frazier takes over on Jan. 1 with Clark continuing to serve in the chairman role.

Wall Street's view on Merck is generally positive with 16 of the 22 analysts covering the company rating it as either a strong buy (6) or a buy (10) with a median 12-month price target of $42.50, implying upside of 18% from current levels.

--

Written by Michael Baron in New York.

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Michael Baron

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