Firm Advises Teva Pharmaceutical on $5 Billion Offering of Senior Notes

November 10, 2011

Teva Pharmaceutical Industries Limited successfully closed the largest securities offering by an Israeli company.

Willkie client Teva Pharmaceutical Industries Limited successfully closed a debt offering by three of its special purpose finance subsidiaries guaranteed by the parent company. The deal, which is the largest securities offering by an Israeli company, consists of six tranches totaling $5 billion:

  • $200,000,000 of three-month LIBOR + 0.80% floating rate senior notes maturing in May 2013 issued by Teva Pharmaceutical Finance IV, LLC ("Teva LLC")

  • $1,100,000,000 of three-month LIBOR + 0.90% floating rate senior notes maturing in November 2013 issued by Teva Pharmaceutical Finance Company B.V. ("Teva BV")

  • $1,000,000,000 of 1.700% fixed rate senior notes maturing in November 2014 issued by Teva LLC

  • $950,000,000 of 2.400% fixed rate senior notes maturing in November 2016 issued by Teva BV

  • $875,000,000 of 3.650% fixed rate senior notes maturing in November 2021 issued by Teva BV

  • $875,000,000 of 3.650% fixed rate senior notes maturing in November 2021 issued by Teva Pharmaceutical Finance IV B.V.

Teva intends to use the net proceeds from this offering to repay approximately $3.75 billion of short-term indebtedness used to finance its recent $6.5 billion acquisition of Cephalon, Inc., for which Willkie assisted Teva in obtaining EU approval. Willkie also recently advised Teva in its consumer health care joint venture with The Procter & Gamble Company, which closed in early November.

Headquartered in Israel with approximately 45,000 employees around the world, Teva is among the top pharmaceutical companies in the world and is the leading generic pharmaceutical company. Teva, which reached $16.1 billion in net sales in 2010, develops, manufactures and markets generic and innovative pharmaceuticals and active pharmaceutical ingredients.

The offering was handled by partner Jeffrey Hochman and associates Benjamin Thompson, Julian Golay and Rebecca Villarreal.