Teva Pharmaceutical Industries Secures $1.5 Billion Credit Line

Teva Pharmaceutical Industries has signed a new, three-year, unsecured revolving credit line worth $1.5 billion with a banking syndicate. This deal replaces and expands existing credit lines, offering more favorable terms to Teva. The syndicate is led by Citigroup Inc. and HSBC Holding plc, with participation from several international banks and two Israeli banks, Bank Hapoalim and Bank Leumi.

Key Takeaways:

• Teva Pharmaceutical Industries secured a new, three-year, $1.5 billion unsecured revolving credit line with a banking syndicate.
• The credit line replaces and expands existing credit lines, offering more favorable terms to Teva.
• The banking syndicate is led by Citigroup Inc. and HSBC Holding plc, with participation from Barclays Capital plc, BNP Paribas SA, Credit Suisse Group AG, Goldman Sachs International Inc., J.P. Morgan plc, Morgan Stanley, Bank Hapoalim, and Bank Leumi.
• Teva's CFO, Eyal Desheh, attributed the improved terms to the strength of the company's cash flow and balance sheet.
• The new credit line is part of Teva's financial strategy to secure liquidity for future business needs through revolving credit lines.
• Teva's share price fell 1.5 percent on Nasdaq to $52.86, while rising 0.4 percent in early trading on the TASE to NIS 192.20.
• The market capitalization of Teva is $49.48 billion.

Statistics:

• $1.5 billion: The value of the new, three-year, unsecured revolving credit line.
• 3 years: The duration of the credit line.
• 1.5 percent: The decline in Teva's share price on Nasdaq.
• $52.86: Teva's Nasdaq share price on the day the news was published.
• 49.48 billion: Teva's market capitalization.
• 0.4 percent: The increase in Teva's share price in early trading on the TASE.
• NIS 192.20: Teva's share price on the TASE in early trading.

Sources:

• "Teva signs $1.5 billion credit line" by Globes, January 24.
• McClatchy-Tribune Information Services, 2011.