Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) has filed a prospectus with the US Securities and Exchange Commission (SEC) to raise $4-5 billion in debt. The company will offer three, five and ten-year bonds, through subsidiaries Teva Pharmaceutical Finance Co. BV, Teva Pharmaceutical Finance IV LLC and Teva Pharmaceutical Finance IV BV, and Teva will unconditionally back the bonds. The offering will probably be held in a few days.
Standard and Poor's gives the bonds an "A" rating, citing Teva's leading position in the fast-growing global market for generic drugs. It added, "Teva intends to generate revenues of $31 billion by 2015, and we believe strategic acquisitions will play an important role in achieving this goal. We expect cash flow to remain in excess of ongoing needs, providing considerable ability to repay relatively limited borrowings."
The company will use the proceeds to repay the $3.75 billion in credit lines and bridge loans it took to acquire US drug company Cephalon in October, as well as to finance the conversion of Cephalon bonds. It will use the residual proceeds, if any, for general corporate purposes.
In June, Teva obtained a $4 billion loan from a syndicate led by HSBC Holding plc (LSE: HSBA; HKSE: 005; NYSE, Paris: HBC) to help finance the $6.8 billion Cephalon acquisition.
The underwriters are Barclays Capital Inc., Citigroup Global Markets Inc., Goldman, Sachs & Co. and Morgan Stanley & Co. LLC.
Teva's share price rose 0.3% in early trading on Nasdaq today to $41, giving a market cap of $36.3 billion, after rising 0.3% on the TASE to NIS 152.
Published by Globes [online], Israel business news - www.globes-online.com - on November 7, 2011
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