Teva Announces Pricing Of $2.5B Of Senior Notes Secures Financing For Ratiopharm Acquisition
Teva Pharmaceutical Industries Limited ("Teva") announced recently that it successfully priced the offering, by its special purpose finance subsidiaries, of a debt offering in three tranches:
- $500M of LIBOR+0.40% floating rate senior notes maturing in December 2011;
- $1.0B of 1.50% fixed rate senior notes maturing in June 2012; and
- $1.0B of 3.00% fixed rate senior notes maturing in June 2015.
The notes will be sold at a price of $1,000.00, $999.02 and $998.76 per $1,000 principal amount, respectively, and are expected to be rated A3 by Moody's Investor Services and A- by Standard & Poor's. These notes will be guaranteed by Teva.
These securities are being offered pursuant to Teva's effective shelf registration statement previously filed with the Securities and Exchange Commission. The offering of these senior notes is being made by a group of underwriters led by Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co. and Morgan Stanley & Co. Inc. Offers and sales of the senior notes may be made only by the related prospectus and prospectus supplement. Barclays Capital Inc. and Citigroup Global Markets Inc. are acting as passive book-running managers for the offering. Closing of the offering is expected on June 18, 2010.
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 $800M of existing debt and for general corporate purposes. Following the successful closing of the offering, Teva, in combination with committed loan facilities and cash on hand, will have secured sufficient financing to finance the acquisition of ratiopharm.
Copies of the prospectus and supplement may be obtained from Credit Suisse Securities (USA) LLC by calling toll free at 800-221-1037, by sending a facsimile to 212-743-5041 or at 11 Madison Avenue, New York, NY 10010; Goldman, Sachs & Co. by mailing the Prospectus Department, 200 West Street, New York, NY 10282, by calling toll free at 1-866-471-2526, by sending a facsimile to 212-902-9316 or by emailing prospectus-ny@ny.email.gs.com; or Morgan Stanley & Co. Inc. by calling toll free at 1-866-718-1649.
This announcement shall not constitute an offer to sell nor the solicitation of an offer to buy nor shall there be any sale of the above described securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities law of any such state.
About Teva
Teva Pharmaceutical Industries Ltd., headquartered in Israel, is among the top 15 pharmaceutical companies in the world and is the leading generic pharmaceuticals company. The company develops, manufactures and markets generic and innovative pharmaceuticals and active pharmaceutical ingredients. Over 80 percent of Teva's sales are in North America and Western Europe.
SOURCE: Teva Pharmaceutical Industries Ltd.