As part of its efforts to reduce its leverage, Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) is offering to buy back up to $400 million in its bonds scheduled for repayment in 2019-2020.
Teva is offering to buy back $300 million of a $2 billion bond series bearing 1.7% interest due for repayment in 2019, $100 million equivalent of a €1.75 billion bond series bearing 0.375% interest due for repayment in 2020, and $50 million of a $700 million bond series bearing 2.25% interest due for repayment in 2020.
The buyback offer expires on October 1. Mizuho Securities and Morgan Stanley are the managing banks of the offer. Teva said that the company was taking advantage of its surplus cash to reduce its debt in accordance with the company's policy of reducing its leverage.
Teva's debt totaled $30.2 billion as of the end of the second quarter, 4% of which is classed as short-term debt. The company's net debt was $28.4 billion. Teva repaid a Swiss bond series in July, reducing its net debt to $27.9 billion.
Most of Teva's debt was issued in 2016 in order to pay for the acquisition of Actavis from Allergan in a deal that amounted to almost $40 billion. In retrospect, the acquisition contributed less than expected to Teva.
Teva, managed by CEO Kare Schultz, has a $23.1 billion market cap.
Published by Globes [online], Israel business news - www.globes-online.com - on September 5, 2018
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