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Teva Pharmaceutical Industries Limited Offered USD 5 billion of notes
CURACAO-Focco Lunsingh Scheurleer and Laurien Dumas of law firm VanEps Kunneman VanDoorne assisted Teva Pharmaceutical Industries Limited in relation to its $5 billion offering of notes, the prospectus of which was filed with the US Securities and Exchange Commission (SEC) to raise USD 5 billion.
Teva offers three, five and ten-year bonds, through among others 2 Curaçao subsidiaries Teva Pharmaceutical Finance Company B.V. and Teva Pharmaceutical Finance IV BV, and Teva will unconditionally guarantee the notes.
Standard and Poor's gives the bonds an "A" rating, citing Teva's leading position in the fast-growing global market for generic drugs. It added, "Teva intends to generate revenues of $31 billion by 2015, and we believe strategic acquisitions will play an important role in achieving this goal. We expect cash flow to remain in excess of ongoing needs, providing considerable ability to repay relatively limited borrowings."
The company will use the proceeds to repay the $3.75 billion in credit lines and bridge loans it took to acquire US drug company Cephalon in October, as well as to finance the conversion of Cephalon bonds. It will use the residual proceeds, if any, for general corporate purposes.