Teva Pharmaceutical Industries Limited (NASDAQ: TEVA) ("Teva") announced today that it successfully priced its debut EUR 1 billion and CHF 450 million debt offerings, and that it entered into a JPY 100 billion (approximately USD 1.2 billion) senior unsecured fixed-rate syndicated term loan facility.
“We are happy to report the successful outcome of these three debut financings, which were executed in order to diversify Teva's funding sources and refinance certain of our outstanding debt to extend its maturity”
"This successful funding is a vote of confidence in Teva and a demonstration of our diversified and robust business model," said Shlomo Yanai, Teva's President and CEO.
An aggregate of EUR 1 billion of 2.875% senior notes due April 2019, and CHF 450 million of 1.500% senior notes due October 2018, were issued by finance subsidiaries, Teva Pharmaceutical Finance IV B.V. and Teva Pharmaceutical Finance V B.V., each guaranteed by Teva. The notes will be sold at a price of EUR 996.48 per EUR 1,000 principal amount and CHF 998.86 per CHF 1,000 principal amount, respectively, and are rated A3 by Moody's Investor Services and A- by Standard & Poor's. Teva intends to use the proceeds of the offerings to refinance and extend the maturities of certain of its outstanding debt.
These offerings are being made outside the United States to non-U.S. persons in reliance on Regulation S under the U.S. Securities Act. Closing of the EUR offering is expected on April 4, 2012; closing of the CHF offering is expected on April 25, 2012, in each case subject to customary closing conditions.
The JPY senior unsecured fixed-rate syndicated term loan facility was entered into by Teva's subsidiary, Teva Holdings GK, and consists of 5-year and 7-year tranches. The facility closed on March 28, 2012. The new facility replaces the previous JPY 81.3 billion one-year senior unsecured revolving facility entered into in July 2011 in connection with the acquisition of Taiyo Pharmaceutical Industry Co. Ltd.
This facility, which is Teva's first syndicated loan facility placed in the Japanese market, included seven Japanese banks, led by Sumitomo Mitsui Banking Corporation, Mizuho Corporate Bank, Ltd., and The Bank of Tokyo-Mitsubishi UFJ, Ltd.
"We are happy to report the successful outcome of these three debut financings, which were executed in order to diversify Teva's funding sources and refinance certain of our outstanding debt to extend its maturity," said Eyal Desheh, Teva's Chief Financial Officer. "Our ability to raise capital in three of the most important capital markets in the world, and the success of the offerings and syndication, demonstrates the strength of Teva's brand name and the confidence investors and financial institutions have in it. Moreover, our strong business presence in Europe and Japan, and the reputation of Teva as a provider of quality affordable medicines in these markets, helped to promote our financings."
Teva Pharmaceutical Industries Ltd.