Merck KGaA, Germany’s second-biggest drug maker, raised a 2 billion-euro ($2.6 billion) credit line to replace a loan due next year.
The five-year transaction, which can be extended by as much as two years, was provided by 19 banks, according to a statement from the Darmstadt, Germany-based company. Merck arranged the transaction itself and proceeds will be used for general corporate purposes and growth projects, the company said.
Merck had a credit line due Oct. 2014 that paid an interest margin of 20 basis points more than the euro interbank offered rate, according to data compiled by Bloomberg.
Merck is rated Baa1 by Moody’s Investors Service and A- by Standard & Poor’s.