DOW JONES NEWSWIRES 
 

Merck & Co. (MRK) said it has arranged for $7 billion in new credit facilities with the help of JPMorgan Chase & Co. (JPM) as it lines up capital to complete its $41.1 billion purchase of rival pharmaceutical Schering-Plough Corp. (SGP).

JPMorgan, acting as the lead, has helped the drug company sign up other worldwide banking giants at a time when lending has been characterized as practically nonexistent. Merck also said that it had amended its current $1.5 billion revolving facility to remain in place following the merger.

The list of banks includes Bank of America Corp. (BAC), BNP Paribas SA (BNPQY), Citigroup Inc. (C), Credit Suisse Group (CS), HSBC Holdings Plc. (HBC), Royal Bank of Scotland Plc (RBS), Santander Bancorp (SBP) and UBS AG (UBS).

Earlier this month, Merck said the loan financing would be split between a $3 billion, 364-day bridge-loan facility, a $3 billion asset-sale facility structured as a 364-day revolver and a $1 billion commercial paper backstop, according to a Securities and Exchange Commission filing.

It is making the acquisition in an attempt to diversify, along with other pharmaceuticals, as the industry consolidates to cope with recessions and a lack of new blockbuster drugs in the pipeline.

Meanwhile, Merck said in a separate release that it has received a letter from the Massachusetts U.S. Attorney confirming it was the target of a previously disclosed federal grand jury investigation on its controversial pain treatment Vioxx.

Merck withdrew Vioxx from the market in 2004 after it was linked to increased risk of heart attacks and strokes and tens of thousands of Vioxx users sued. Merck settled the litigation for $4.85 billion.

Shares of Merck were down less than 1% in late trading, moving at $27.75.

-By David Benoit, Dow Jones Newswires; 201-938-2472; david.benoit@dowjones.com