By Lisa Kerner
Charlotte, N.C., July 19 – Teva Pharmaceutical Industries Ltd. priced $15 billion in six series of fixed-rate senior notes (Baa2/BBB) on Monday, according to details of the issuance in an FWP filed with the Securities and Exchange Commission.
The notes were issued though Teva Pharmaceutical Finance Netherlands III BV and guaranteed by Teva Pharmaceutical Industries.
The company priced $1.5 billion of 1.4% two-year notes at 99.914 to yield 1.444%. The notes sold at Treasuries plus 75 basis points.
A $2 billion tranche of 1.7% three-year notes priced at 99.991 to yield 1.703%, or 85 bps over Treasuries.
Teva priced $3 billion of 2.2% five-year notes at 99.835 to yield 2.235%. The company sold the notes at Treasuries plus 110 bps.
Also, the company brought $3 billion of 2.8% seven-year notes at 145 bps over Treasuries. The notes priced at 99.666 to yield 2.853%.
A $3.5 billion offering of 3.15% notes due Oct. 1, 2026 priced 99.734 to yield 3.18%, or 160 bps over Treasuries.
Teva’s final tranche of $2 billion of 4.1% notes due Oct. 1, 2046 priced at 99.167 to yield 4.148%. The notes sold at 185 bps over Treasuries.
All of the tranches priced at the tight end of price talk, according to a market source.
The company dropped a series of floating-rate notes.
BofA Merrill Lynch, Barclays, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Mizuho Securities USA Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, RBC Capital Markets Corp. and SMBC Nikko were the bookrunners.
Teva also planned to price euro- and Swiss franc-denominated notes to help fund its acquisition of the generics business of Allergan plc.
The global pharmaceutical company is based in Jerusalem.
| Issuer: | Teva Pharmaceutical Finance Netherlands III BV
|
| Guarantor: | Teva Pharmaceutical Industries Ltd.
|
| Amount: | $15 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Barclays, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Mizuho Securities USA Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, RBC Capital Markets Corp., SMBC Nikko
|
| Co-managers: | Bank of China Ltd. London Branch, BBVA Securities Inc., Commerz Markets LLC, Lloyds Securities Inc., MUFG, PNC Capital Markets LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC
|
| Trade date: | July 18
|
| Settlement date: | July 21
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| Two-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | July 20, 2018
|
| Coupon: | 1.4%
|
| Price: | 99.914
|
| Yield: | 1.444%
|
| Spread: | Treasuries plus 75 bps
|
| Price guidance: | Treasuries plus 80 bps area, plus or minus 5 bps
|
| Make-whole call: Treasuries plus 12.5 bps
|
|
|
| Three-year notes
|
| Amount: | $2 billion
|
| Maturity: | July 19, 2019
|
| Coupon: | 1.7%
|
| Price: | 99.991
|
| Yield: | 1.703%
|
| Spread: | Treasuries plus 85 bps
|
| Price guidance: | Treasuries plus 90 bps area, plus or minus 5 bps
|
| Make-whole call: Treasuries plus 15 bps
|
|
|
| Five-year notes
|
| Amount: | $3 billion
|
| Maturity: | July 21, 2021
|
| Coupon: | 2.2%
|
| Price: | 99.835
|
| Yield: | 2.235%
|
| Spread: | Treasuries plus 110 bps
|
| Price guidance: | Treasuries plus 115 bps area, plus or minus 5 bps
|
| Make-whole call: Treasuries plus 20 bps
|
|
|
| Seven-year notes
|
| Amount: | $3 billion
|
| Maturity: | July 21, 2023
|
| Coupon: | 2.8%
|
| Price: | 99.666
|
| Yield: | 2.853%
|
| Spread: | Treasuries plus 145 bps
|
| Price guidance: | Treasuries plus 150 bps area, plus or minus 5 bps
|
| Make-whole call: Treasuries plus 25 bps
|
|
|
| 10-year notes
|
| Amount: | $3.5 billion
|
| Maturity: | Oct. 1, 2026
|
| Coupon: | 3.15%
|
| Price: | 99.734
|
| Yield: | 3.18%
|
| Spread: | Treasuries plus 160 bps
|
| Price guidance: | Treasuries plus 165 bps area, plus or minus 5 bps
|
| Make-whole call: Treasuries plus 25 bps
|
|
|
| 30-year notes
|
| Amount: | $2 billion
|
| Maturity: | Oct. 1, 2046
|
| Coupon: | 4.1%
|
| Price: | 99.167
|
| Yield: | 4.148%
|
| Spread: | Treasuries plus 190 bps
|
| Price guidance: | Treasuries plus 185 bps area, plus or minus 5 bps
|
| Make-whole call: Treasuries plus 30 bps
|
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