Teva (TEVA) Stock Down After Pricing in Debt Offering
NEW YORK (TheStreet) -- Shares of Teva Pharmaceuticals (TEVA) - Get Report are down 0.28% to $53.95 in late-morning trading, as the company announced that it priced a debt offering for $15 billion worth of senior notes.
The notes, which mature between 2018 and 2046, will yield approximately $14.9 billion in net proceeds. The Israel-based pharmaceutical company plans to use the money to pay the cash portion of its acquisition of Allergan's (AGN) generic drug business, which it expects to close July 21.
"The strength of the demand, which was multiple times the size of the offering, and the attractive prices, are a testament to Teva's financial strength and strong reputation with investors," Eyal Desheh, Teva's Chief Financial Officer, said in the announcement.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate TEVA PHARMACEUTICALS as a Buy with a ratings score of B. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels, expanding profit margins, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
You can view the full analysis from the report here: TEVA
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