Teva Pharmaceutical Industries Limited (NYSE: TEVA) announced today that it successfully priced a debt offering by its special purpose finance subsidiaries, consisting of two tranches:
- $700,000,000 of 2.250% fixed rate senior notes maturing in March 2020 issued by Teva Pharmaceutical Finance IV, LLC; and
- $1,300,000,000 of 2.950% fixed rate senior notes maturing in December 2022 issued by Teva Pharmaceutical Finance Company BV
The notes will be sold at a price of $999.55 and $998.02 per $1,000 principal amount, respectively, and are rated A3 by Moody's Investor Services, A- by Standard & Poor's and A- by Fitch Ratings. The notes will be guaranteed by Teva Pharmaceutical Industries Limited.
"We are very satisfied with the outcome of our debt offering, which was executed to repay existing debt in line with our recently announced new strategy," stated Eyal Desheh, Executive Vice President and Chief Financial Officer of Teva. "The success of this offering demonstrates the continued confidence that fixed-income investors have in Teva".
Teva intends to use the net proceeds from this offering to repay the approximately $700 million remaining outstanding under a term loan credit facility due in 2013 and 2014 and redeem the $1 billion outstanding principal amount of its 1.70% Senior Notes due November 2014 via a make-whole call. The balance will be used to repay other indebtedness and/or for general corporate purposes.These securities are being offered pursuant to Teva's effective shelf registration statement previously filed with the Securities and Exchange Commission. The offering is being made by a group of underwriters led by Barclays Capital Inc., Goldman, Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC. Offers and sales of the senior notes may be made only by the related prospectus and prospectus supplement. Closing of the offering is expected on December 18, 2012.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV