NEW YORK, Oct 1 (IFR) - Bayer launched a US$7bn six-tranche acquisition bond financing for Merck's consumer care business Wednesday at levels 10bp-25bp inside of initial price thoughts, leads on the trade said.
The US$850m three-year fixed-rate tranche was launched at Treasuries plus 55bp, versus guidance of 60bp area and initial price thoughts of 80bp; the US$2bn five-year at T+80bp versus 85bp guidance and 90bp IPTs; the US$1.5bn seven-year at T+ 90bp versus 95bp guidance and IPTs of 105bp; the US$1.75bn 10-year at T+110bp versus guidance of 115bp and IPTs of 125bp.
Bayer (A3/A-) also launched a US$500m two-year floating-rate note at Libor plus 25bp versus 30bp area guidance and IPTs of 37.5bp, and a US$400m three-year FRN at Libor plus 28bp.
Plans for a five-year FRN were dropped.
Joint bookrunners Bank of America Merrill Lynch, Deutsche Bank, Goldman Sachs and JP Morgan are expected to price the deal, issued by Bayer US Finance, later on Wednesday.
For more detail, click on (Reporting by Mike Gambale; Writing by Natalie Harrison; Editing by Marc Carnegie)