On Friday, Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) raised $2 billion in debt in an offering of two bond series by subsidiaries. The company will use the net proceeds to repay $700 million balance of a loan, due in 2013 and 2014, and to redeem $1 billion outstanding principal of a bonds due in November 2014. It will use the balance to repay other debts and for general corporate purposes.
Teva Pharmaceutical Finance IV LLC raised $700 million at a fixed interest rate of 2.25%. The bond matures in March 2020. Teva Pharmaceutical Finance Company BV raised $1.3 billion at a fixed rate of 2.95%. The bond matures in December 2022. Moody's Investor Services rated the bonds A3, and both Standard & Poor's and Fitch Rating gave them an A- rating.
Fitch said that rating reflects Teva’s strategic position as the world's largest generic drug manufacturer, its financial discipline, strong cash flow and liquidity, and capital deployment toward debt reduction.
“Our decision to obtain a credit rating from Fitch further supports our significant presence in the international capital markets,” said Teva CFO Eyal Desheh. “We place a high priority on sustainable access to the capital markets and ensuring a strong long-term capital structure for Teva, and believe that a Fitch rating is an important milestone in achieving these objectives.”
Published by Globes [online], Israel business news - www.globes-online.com - on December 16, 2012
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