Teva over-allotment option partially exercised, raising convertibles to $1.3925 billion

By Lisa Kerner

Erie, Pa., Feb. 24 - Teva Pharmaceutical Industries Ltd. said the underwriters of its offerings of convertible debentures partially exercised the over-allotment options, raising the total size to $1.3925 billion from the original $1.25 billion.

The greenshoe added $67.5 million to the $750 million issued via Teva Pharmaceutical Finance Co. BV for a total of $817.5 million. The option for this tranche had been for up to $112.5 million.

The $500 million issued by Teva Pharmaceutical Finance Co., LLC was increased to $575 million, with the greenshoe on this portion fully exercised.

The closing of the over-allotment option is scheduled for March 1.

Teva originally priced the convertibles on Jan. 27 before the open.

It sold the Teva Pharmaceutical Finance Co. BV convertible senior debentures to yield 1.75% with a 25% initial conversion premium.

The Teva Pharmaceutical Finance Co., LLC convertible senior debentures were priced at a 0.25% yield with a 15% premium.

The offering of the 1.75% convertibles was led by Lehman Brothers Inc., Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc.

Lehman Brothers Inc., Credit Suisse Securities (USA) LLC and Bear, Stearns & Co. Inc. led the 0.25% convertibles.

Both parts were sold off a shelf registration.

Teva, based in Petach Tikva, Israel, develops, manufactures and markets generic and human pharmaceuticals and active pharmaceutical ingredients.

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