Teva Pharmaceutical Industries Ltd., one of the largest generic-drugmakers in the world, sold a record $5 billion in bonds tied to environmental, social and governance targets.
The company, through its finance units, raised the funds in U.S. dollar and euro denominated bonds on Tuesday after the offering was upped by $1 billion, according to a person with knowledge of the matter. The longest portion of the four-part deal, a euro-denominated 8.5-year security, yields 4.375%, after initially being marketed in the high 4% area, the person said.
“The upsizing of the issuance is a testament to the demand for ESG-linked bonds,” Bloomberg Intelligence analyst Mike Holland said in a telephone interview Tuesday. “It certainly doesn’t hurt that this deal is wrapping up on the same day that Teva, along with J&J and Endo, have their first win in California.”
Superior Court Judge Peter Wilson in Santa Ana on Monday rejected claims that units of J&J, Teva, Endo International Plc and Abbvie Inc.’s Allergan Plc duped doctors and patients about the addictiveness of opioid painkillers and created a so-called “public nuisance” tied to the medications.
Proceeds from the bond sale together with cash on hand will fund a $3.5 billion tender offer announced last week for a series of notes maturing through 2024, according to a statement. Proceeds will also be used to pay back outstanding debt upon maturity or earlier redemption and for general corporate purposes.
“The company has been guiding for a large liability management exercise for some time but concerns around litigation risks had thrown a wrench in the gears for them to be able to do a regular bond financing,” said Holland.
https://finance.yahoo.com/news/teva-sell-record-5-billion-152310124.html
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