Teva signs $2.3b credit facility deal

Teva Photo: ASAP Creative Shutterstock

The new $2.3 billion unsecured revolving credit facility will replace the company's existing $3 billion credit facility.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) announced today that it has entered into a new $2.3 billion unsecured revolving credit facility, which replaces its existing $3 billion credit facility.

Teva EVP and CFO Mike McClellan said,“By signing this new revolving credit facility, with its extended and flexible terms, we took another step on our financial strategy and secured ample contingent liquidity to support Teva's financing needs in the coming years. We achieved all goals we set to ourselves in this refinancing exercise, particularly optimizing the overall size of the facility, and we were very pleased to see the significant demand to commit, demonstrating the strong support from our existing relationship banks as well as from additional new banks.”

Bank of America Merrill Lynch and HSBC Bank plc are coordinating book-runners and mandated lead arrangers for the facility. The syndicate also includes Barclays Bank PLC, BNP Paribas, Citibank N.A., Credit Suisse AG, Goldman Sachs Bank USA, JPMorgan Chase Bank N.A., Mizuho Bank, Morgan Stanley Bank N.A., Morgan Stanley Senior Funding, INC., MUFG Bank, Sumitomo Mitsui Banking Corp and PNC Bank National Association as book-runners and mandated lead arrangers, and , Banca IMI as lead arranger.

As of the end of 2018, Teva had a debt of $28.9 billion ($27.1 billion net) down from $35 billion at the end of 2017. Most of the debt was raised for the $40 billion acquisition of Activis in 2016. In December 2017, Teva unveiled an aggressive streamlining plan to cut $3 billion in annual costs.

Published by Globes, Israel business news - - on April 10, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Teva Photo: ASAP Creative Shutterstock
Teva Photo: ASAP Creative Shutterstock
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