Connect with us

Hi, what are you looking for?

Jewish Business News


Teva Sells $15 Billion of Bonds

Debt sale to help fund purchase of Allergan drug unit

Teva CFO Eyal-Desheh


Teva Pharmaceutical Industries Ltd. announced today that it sold $15 billion bond offering, Monday to help fund its acquisition of Allergan PLC’s generics division. This makes Teva the latest company to take advantage of attractive financing conditions with a massive debt offering. Reuters reported that the offering had attracted demand of $70 billion.

Teva’s debt offering, via by its special purpose finance subsidiary Teva Pharmaceutical Finance Netherlands III B.V., consists of the following tranches:

$1.5 billion of 1.400% fixed rate senior notes maturing in 2018;
$2.0 billion of 1.700% fixed rate senior notes maturing in 2019;
$3.0 billion of 2.200% fixed rate senior notes maturing in 2021;
$3.0 billion of 2.800% fixed rate senior notes maturing in 2023;
$3.5 billion of 3.150% fixed rate senior notes maturing in 2026; and
$2.0 billion of 4.100% fixed rate senior notes maturing in 2046.
The notes will be sold at a price of 99.914%, 99.991%, 99.835%, 99.666%, 99.734% and 99.167% of the principal amount thereof, respectively, and will be guaranteed by Teva Pharmaceutical Industries Limited.

Moody’s Investors Service assigned a Baa2 rating to the notes.

The company says that additional senior, unsecured benchmark-sized offerings of euro and/or Swiss francCHF-denominated multi-tranche debt securities are contemplated, subject to market conditions.

Teva originally planned the offering for the fourth quarter – it has a bridging bank loan that gives it flexibility over the timing – but brought the timetable forward because of the low interest rate environment. Teva also published its multi-year guidance last week, earlier than expected, even though it had not yet completed the Allergan deal.

Teva is paying $35.1 billion net and nearly $40 billion gross for Allergan generics division Actavis. The companies are still waiting for approval from the US Federal Trade Commission in order to complete the deal signed a year ago.

Teva CFO Eyal Desheh said, “The strength of the demand, which was multiple times the size of the offering, and the attractive prices, are a testament to Teva’s financial strength and strong reputation with investors.”

Teva says that the net proceeds from this offering will be approximately $14.9 billion, after the underwriting discounts and estimated offering expenses. As mentioned Teva intends to use the net proceeds from this offering towards the cash portion of the purchase price for its previously announced acquisition of Allergan plc’s worldwide generic pharmaceuticals business (“Actavis Generics”), to pay related fees and expenses, and/or otherwise for general corporate purposes. Closing of the offering is expected on July 21, 2016.

Barclays, BofA Merrill Lynch, BNP PARIBAS, Credit Suisse, HSBC, Mizuho Securities, Citigroup, Morgan Stanley, RBC Capital Markets and SMBC Nikko are acting as the joint book-running managers for the offering. Rothschild & Co. acted as sole financial advisor to Teva in connection with the offering.


READ MORE: Allergan

Erez Vigodman- TEVA

Teva Pharmaceutical Industries Ltd. will try to win fast European Union approval for its takeover of Allergan’s generics unit by making concessions to regulators, according to “Bloomberg” More…

Erez Vigodman- TEVA

In a letter to the Federal Trade Commission (FTC), The American Antitrust Institute (AAI), a non-profit organization, outlined the competitive concerns raised by the proposed merger of generic pharmaceutical makers More…

Teva CEO Erez Vigodman

Teva Pharmaceutical Industries Ltd has announced today two offerings totaling approximately $6.75 billion of ordinary and preferred shares to fund its takeover of Allergan Plc’s generic-drug business More…


Global mergers and acquisitions activity passed its annual record on Monday, as Pfizer Inc.’s agreement to combine with Allergan Plc pushed the value of deals this year past highs set in 2007. With a little more More…

Bill ackman Getty

Pfizer’s talks to acquire Allergan in a $150 billion deal that would see the US drug giant redomicile in Ireland accelerated on Wednesday, as the US Treasury prepared to clamp down further on such tax inversions. Pfizer More…

Bill Ackman

Pfizer Inc. and Allergan Plc are considering a merger, the Wall Street Journal reported, setting the stage for a deal that could be among the largest in the drug industry’s history and give Pfizer control More…

Teva CFO Eyal-Desheh

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) has entered into commitment letters relating to its pending acquisition of Allergan’s generic pharmaceuticals business with Bank of America More…

Erez Vigodman,   Teva

Following a report in the “Wall Street Journal” of negotiations on the deal, and the suspension of trading in Teva stock on the Tel Aviv Stock exchange this morning, Teva Pharmaceutical Industries More…


Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.



You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...


After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...


The contract signed between the Israeli government and Pfizer shows clearly and unequivocally that this is a clinical study on humans - The agreement...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.

cialis cialis satış