Yesterday, Teva secured $2.1 billion in debt finance through an offering of senior notes overseas. Teva originally sought to raise just $1.5 billion. The offering was expanded in the light of the high demand from investors at full price for the two series of notes that Teva offered without collateral.
The first series, amounting to $1 billion, was issued at 7.125% annual interest and is redeemable in 2025. The second series, amounting to €1 billion ($1.1 billion) was issued at 6% interest, and is also redeemable in 2025.
Teva will use the proceeds from the offering to recycle short-term debt, and to make partial early repayment of €650 million on a bond series with a current balance of €1.66 billion, repayable in 2020. Teva says that early repayment will be made during the fourth quarter of 2019.
"We are very pleased with the outcome of this transaction. The solid demand we got from both the US and European markets clearly demonstrates the confidence our investors have in Teva’s strategy and financial prospects. With this transaction and the tender offer and bond redemption, we have aligned our maturity profile for the coming years with our core operational performance, as we continue to focus on delivering our business objectives and long term goals," said Teva CEO Kåre Schultz.
Teva's share price closed at $10.29 in New York yesterday, giving the company a market cap of $11 billion, following a 50% surge in the share price since the beginning of October, against a background of diminished fears of the hit the hit the company might take from the lawsuits concerning the sale of opioid-based drugs in the US, and a slight improvement in its results.
Published by Globes, Israel business news - en.globes.co.il - on November 20, 2019
© Copyright of Globes Publisher Itonut (1983) Ltd. 2019