BERLIN-- Bayer AG said Thursday it has sold $7 billion worth of bonds to help finance its acquisition of Merck & Co. Inc.'s over-the-counter medicine business.

In May the German drug and pesticide maker agreed to buy Merck's consumer business for $14.2 billion. It said the bond comprises six tranches with short- mid- and long-term maturities.

The short-term paper is a two-year variable tranche with a volume of $500 million and a coupon of 0.25 percentage points above the three-month dollar Libor rate.

The mid-term bond has a volume of $1.25 billion and a three-year maturity. It has a $850 million fixed rate portion with a 1.5% coupon and a $400 million portion with a coupon that is 0.28 percentage points above the three-month dollar Libor rate. There is also a five-year bond with a volume of $2 billion and a coupon of 2.375%.

The long-term tranches of $1.5 billion maturing in 2021 and $1.75 billion maturing in 2024 carry coupons of 3% and 3.375%.

The net cash provided by the bond will replace part of the bridge financing secured by Bayer in May 2014 to help fund the Merck deal.

Write to Friedrich Geiger at friedrich.geiger@wsj.com

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