Teva raises €4b in European bond offering

Eyal Desheh

The Israeli pharmaceutical company also raised $15 billion earlier this week as it is set to complete the $40 billion Actavis acquisition.

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 II B.V., consisting of the following tranches:

€1.75 billion of 0.375% fixed rate senior notes maturing in 2020.

€1.50 billion of 1.125% fixed rate senior notes maturing in 2024.

€0.75 billion of 1.625% fixed rate senior notes maturing in 2028.

Teva added that the notes will be sold at a price of 99.644%, 99.231% and 98.898% of the principal, respectively, and will be guaranteed by Teva Pharmaceutical Industries Limited. These notes are in addition to the multi-tranche $15 billion aggregate principal amount of US dollar-denominated senior notes that were priced earlier this week. An additional senior, unsecured benchmark-sized offering of CHF-denominated multi-tranche debt securities is contemplated, subject to market conditions.

Teva CFO Eyal Desheh said, “The success of our European bond offering capitalized on the strong demand for our $15 billion U.S. debt offering earlier this week. The creation of one of the largest order books in the history of the European debt capital markets, exceeding the offering size many times, together with the exceptionally low rates, is a testament to Teva’s financial strength and credibility with investors worldwide."

The net proceeds from this Eurobond offering will be €3.96 billion, after underwriting discounts and estimated offering expenses. Teva will use the proceeds to finance the $40 billion acquisition of Actavis, the generics division of Allergan, which is due to be completed in the coming few weeks.

Published by Globes [online], Israel business news - www.globes-online.com - on July 21, 2016

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

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018