Merck Sells Investment-Grade Bonds to Fund Verona Acquisition, Joins Busy Primary Market

Merck & Co. is selling investment-grade corporate bonds to fund its acquisition of Verona Pharma Plc. The sale, led by Bank of America, Goldman Sachs, JPMorgan Chase, and Mizuho, includes six parts, including a 30-year bond with a yield around 1 percentage point above similarly dated Treasuries. Proceeds will be used for general corporate purposes, including debt repayment. The sale comes on a busy day for the US high-grade primary market, with over 16 borrowers selling debt.

Merck & Co. is set to sell investment-grade corporate bonds today to fund its acquisition of fellow drugmaker Verona Pharma Plc. The sale, led by Bank of America, Goldman Sachs Group Inc., JPMorgan Chase & Co., and Mizuho, includes six parts, with a 30-year bond among them. Initial price discussions for this bond call for a yield around 1 percentage point above similarly dated Treasuries [1].

The pharmaceutical giant's debt sale comes on a busy day in the US high-grade primary market, with over 16 borrowers selling debt, as is usual for the period following the Labor Day holiday in the US. Others so far include units of carmakers like Ford and Toyota, as well as financial institutions like HSBC and Credit Agricole [1].

Proceeds from Merck’s debt sale will be used for general corporate purposes, including repaying its outstanding debt. The acquisition of Verona, announced in July, is valued at roughly $10 billion [1].

This story was produced with the assistance of Bloomberg Automation.

References:
[1] https://www.bloomberg.com/news/articles/2025-09-02/merck-taps-us-investment-grade-bond-market-for-verona-purchase