For the first time in many years, the three international rating agencies now hold an investment grade rating for the debt of Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA). This is after last week S&P followed the other two agencies, Fitch and Moody's, and raised Teva's debt rating from BB plus to BBB minus.
Teva is taking advantage of the momentum and embarking on another debt recycling move. The company today reported its plan to issue senior notes, denominated in euros and US dollars. With the money it raises, the Israeli pharmaceutical company will repay existing bond series and use it for general company needs.
According to Teva's announcement, bonds it plans to repay include all outstanding bonds that carry an interest rate of 6.75% and are due for maturity in 2028. According to Teva's latest reports, this is a series worth $1.25 billion. Another series that Teva plans to repay matures in 2029 and bears an interest rate of 7.875%, and worth $398 million in the most recent report. Up to $450 million will be allocated to repay bonds series linked to due for maturity in 2027 with a 4.75% interest rate, and up to €1.25 billion will be allocated to buy similar bonds in euros, which are due for maturity in 2030.
"Return to growth"
At the end of the second quarter, Teva's debt was $16.6 billion, of which about 27% is defined as short-term debt. The debt recycling process may increase the makam short-term debt and also reduce interest rates, due to the recent rating upgrades.
Last week, when S&P raised Teva's debt rating, CFO Eli Kalif said, "Three rating upgrades in just a few months reflect the successful implementation of the 'return to growth path' strategy, and the significant progress we have made in reducing debt and strengthening Teva's financial profile. This significant milestone strengthens our financial flexibility and allows us to continue investing in growth and creating long-term value."
Teva, managed by CEO Richard Francis, is traded on the TASE and NYSE with a market cap of $42.4 billion. Next week, the change that Teva recently announced will take place with its ordinary shares listed for trading on the New York Stock Exchange (NYSE), instead of trading in the existing ADSs (American Depository Receipts). The company believes that this move, which will be implemented on September 14, will expand Teva's global share base and also support its entry into leading stock indices (there will be no impact on the share in Tel Aviv).
Teva may also be targeting the US flagship index S&P 500, which includes the 500 largest US companies. Teva is considered a US company for SEC reporting purposes and is no longer considered a foreign company in the US because since it acquired Actavis, more than 50% of its assets are in the US.
Published by Globes, Israel business news - en.globes.co.il - on September 7, 2026.
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