Power Alley: To Finance The Terns Purchase, Merck Will Offer A Series Of Layered-Maturity Bonds, Under Existing SEC Shelf Registrations. Smart Finance, That, Mr. Davis.

We are seriously looking at grabbing a few of the longer dated coupons, since this makes a nice low risk add -- to the retirement draws. The interest will be taxable -- but at around 5% a year, this is a nice add. And, Merck is smart to get the deal done before summer, when Tangerine 2.0's "global calamity risk" looks to. . . rise.

What an odd. . . world. He is the opposite of what big business needs: stability. He offers. . . none [but he is finally dropping his $10 billion supposed (and preposterous) suit against the IRS today. Damn.] Existing Merck debt is trading in both deep, and liquid oceans -- and this morning is yielding. . .Merck 4.90% (Due 05/17/2044): Trades around a 5.62% yield to maturity. Sweet.

In any event, while Barron's reporting is incorrect that this is a "private" matter, the numerical details are accurate, as Rahway has this morning filed an SEC 424(b) red herring prospectus detailing the ~$6 billion offering of a series of debt securities.

. . .Merck is seeking to raise about $6 billion from an investment-grade bond sale to help finance its acquisition of Terns Pharmaceuticals Inc., according to people familiar with the matter.

Merck is selling the notes in as many as seven parts, according to a separate person with knowledge of the matter. The longest portion of the offering, a 30-year security, may yield about 1.05 percentage points above Treasuries, said the person, who asked not to be identified as the details are private. . . .

Nope. Not private -- being very publicly offered at Wall & Broad this morning. And if the yields on any of these bonds approach 5%, they are great long term, low risk ways to enhance your annual retirement draw -- at a risk level almost identical to US Treasuries. You heard it here first. Onward, smiling.

नमस्ते