Teva Prices $2.5 Billion In Notes In Offering
From Associated Press (June 16, 2010)
NEW YORK -- Generic drug maker Teva Pharmaceutical Industries Ltd. said Tuesday that it had priced $2.5 billion worth of notes that it is offering.
Of the total, $500 million in senior notes maturing in December 2011 will carry a floating interest rate of the London Interbank Offered Rate plus 0.4 percent; $1 billion in senior notes maturing in June 2012 will carry a 1.5 percent fixed interest rate; and $1 billion in senior notes maturing in June 2015 will carry a 3 percent fixed interest rate.
The notes will be sold at $1,000, $999.02 and $998.76 per $1,000 principal amount respectively.
The company said it expects the notes to be rated A3 by Moody's Investor Services and A- by Standard & Poor's.
The offer is expected to close on Friday.
Teva said it expects to use the proceeds to help pay for the acquisition of German generic drug maker Ratiopharm GmbH -- a deal announced in March worth nearly $5 billion.
Some of the proceeds from the note offering will be used to repay some $800 million in existing debt and for general corporate purposes.
Teva shares were down 8 cents at $53.60 in after-hours trading,
after closing up 40 cents at $53.68 on Tuesday.
Posted: June 2010