Teva raises 1b Swiss francs in debt

Eyal Desheh
Eyal Desheh

The Israeli pharmaceutical company has raised $20.4 billion in debt financing over the past week for the imminent $40 billion acquisition of Actavis.

Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) announced last night that it had successfully priced a debt offering by its special purpose finance subsidiary Teva Pharmaceutical Finance Netherlands IV B.V. for 1 billion Swiss francs. The offering comprises three tranches: CHF300 million of 0.125% fixed rate senior notes maturing in 2018; CHF350 million of 0.500% fixed rate senior notes maturing in 2022; and CHF350 million of 1.000% fixed rate senior notes maturing in 2025.

The Israeli pharmaceutical company has now raised $20.4 billion in debt financing over the past week for the imminent $40 billion acquisition of Actavis, the generic division of Allergan. On Monday Teva raised $15 billion debt in the US and on Wednesday, the company raised €4 billion debt in Europe.

Teva CFO Eyal Desheh said, "With this Swiss franc-denominated transaction, Teva has just completed a highly successful series of debt offerings across three major markets. Final yields and spreads across all maturities, which ranged from two to 30 years, were significantly lower than our initial expectations, and materially decreased during the offering process. In each of these offerings, investor demand was a significant multiple of the offering size, which demonstrates the confidence the capital markets have in Teva, its future and its business model.”

Published by Globes [online], Israel business news - www.globes-online.com - on July 22, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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