Teva Raises $2.1 Billion in Debt Tender Offer
Teva originally aimed to raise $1.5 billion, to redeem previous debentures it raised to finance the $40.5 billion acquisition of Actavis in 2016
Sophie Shulman | 09:50 20.11.2019
Teva Pharmaceutical Industries Ltd. announced on Tuesday it has completed its debt tender offer opened earlier this month, upsizing it from the $1.5 billion it aimed to raise to $2.1 billion. The company announced the tender to redeem previous debentures it raised to fund the $40.5 billion acquisition of Actavis in 2016. Teva has benefited from the current demand in the bond markets for high-paying bonds with lower credit ratings. Teva’s dollar notes, issued at an aggregate principal amount of $1 billion, carry a 7.125% interest. Teva’s euro notes, issued at an aggregate principal amount of $1.1 billion, have a 6% interest. third quarter of 2019 with a net debt of $25.7 billion—a significant reduction from the $34 billion at which it stood two years ago—but the company’s continued drop in revenues and profitability cast doubt on its ability to carry its debt covenants.