Telaviv : Teva Pharmaceutical Industries Ltd said it successfully priced a debt offering for $15 billion worth of senior notes to help fund its acquisition of Allergan Plc’s generic drug business.
The fixed-rate notes mature between 2018 and 2046.
Additional senior, unsecured benchmark-sized offerings of euro and/or Swiss franc-denominated multi-tranche debt securities are contemplated, subject to market conditions.
Israel-based Teva has previously said it planned to sell $22 billion of bonds.
“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,” said Eyal Desheh, Teva’s chief financial officer.
The net proceeds from this offering will be about $14.9 billion, which Teva intends to use towards the cash portion of the $40.5 billion purchase of Allergan’s generics business.
Closing of the offering is expected on July 21.
Barclays, Bank of America Merrill Lynch, BNP Paribas, Credit Suisse, HSBC, Mizuho Securities, Citigroup, Morgan Stanley, RBC Capital Markets and SMBC Nikko are acting as the joint book running managers for the offering. Rothschild & Co acted as sole financial advisor to Teva in connection with the offering.