Jun 19 2010
Teva Pharmaceutical Industries Limited (NASDAQ: TEVA) ("Teva") announced today that it has closed the previously announced offering, by its special purpose finance subsidiaries, of a debt offering in three tranches:
“We are pleased with today's results, having raised the necessary capital to complete the ratiopharm acquisition - through the debt offering and new loan commitments - while maintaining our current credit ratings”
- $500 million of LIBOR+0.40% floating rate senior notes maturing in December 2011;
- $1.0 billion of 1.50% fixed rate senior notes maturing in June 2012; and
- $1.0 billion of 3.00% fixed rate senior notes maturing in June 2015.
The notes were sold at a price of $1,000.00, $999.02 and $998.76 per $1,000 principal amount, respectively, and are guaranteed by Teva. These securities were offered pursuant to Teva's effective shelf registration statement previously filed with the Securities and Exchange Commission.
Teva expects to use the proceeds from this offering to pay a portion of the purchase price for the acquisition of Merckle-ratiopharm group, repay approximately $800 million of existing debt and for general corporate purposes. As a result of the offering, Teva, in combination with committed loan facilities and cash on hand, has secured sufficient financing to finance the acquisition of ratiopharm.
"We are pleased with today's results, having raised the necessary capital to complete the ratiopharm acquisition - through the debt offering and new loan commitments - while maintaining our current credit ratings," noted Eyal Desheh, Teva's Chief Financial Officer. "We intend to continue to maintain a strong balance sheet following the completion of the acquisition, with sufficient resources to support the continued growth of our business and with ample flexibility for potential future strategic opportunities. We continue to make progress to obtain the necessary regulatory approvals for this acquisition, which we expect will close before the end of the year."
Source:
Teva Pharmaceutical Industries Ltd.,