On Friday, Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) filed a Form F-3 with the US Securities and Exchange Commission (SEC) for the raising of capital. The company did not disclose the amount it seeks to raise in the shelf prospectus, or the structure of the fundraising.
Teva stated that The Bank of New York Mellon serves as depositary for its American Depository Receipts (ADRs). This is a new bank; Teva's previous depository for its ADRs was Lehman Brothers.
Under the shelf prospectus, Teva will be able to sell shares, bonds, and warrants, although it has not disclosed the prices of the terms of these offerings. The company said, "Unless the applicable prospectus supplement states otherwise, the net proceeds from the sale of securities offered by Teva or the finance subsidiaries will be used to finance our pending acquisition of Barr (or to refinance indebtedness incurred in connection with the acquisition) and for other general corporate purposes. General corporate purposes may include additions to working capital, investments in or extensions of credit to our subsidiaries, the repayment of indebtedness and future acquisitions."
However, it is not clear whether Teva will use the shelf prospectus, since it has already secured the $3.6 billion needed for the acquisition of Barr Pharmaceuticals Inc. (NYSE: BRL), including $1.75 billion in bridge loans from Bank Hapoalim (TASE: POLI; LSE:80OA) and Bank Leumi (TASE: LUMI). Teva also secured an arrangement with a syndicate headed by Bank of America Inc. (NYSE: BAC), which previously provided credit to Barr to extend this credit line after the takeover.
Teva's share rose 3% on Friday on Nasdaq to $43.26. The share fell 0.5% by early afternoon on the TASE today to NIS 169.10.
Published by Globes [online], Israel business news - www.globes-online.com - on December 7, 2008
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