JERUSALEM--(BUSINESS WIRE)--Feb. 1, 2018--
Teva Pharmaceutical Industries Ltd., (NYSE and TASE: TEVA) today
announced amendments to its USD and JPY term loan and revolving credit
facilities, providing the company greater flexibility in its financial
leverage ratio covenants. The amended leverage ratio covenants in the
credit agreements permit a gradual increase in the leverage ratio from
5.0 times currently to 5.9 times at Q3 and Q4 2018, gradually declining
to 3.5 times by December 31, 2021.
Michael McClellan, EVP and Chief Financial Officer of Teva, stated: “We
are pleased to have the continued support of our lenders and appreciate
their confidence in Teva and specifically in our robust restructuring
plan.” Mr. McClellan continued: “This amendment is an important part of
our plan to obtain additional flexibility with our credit facilities and
manage our capital structure.”
As of January 31, 2018, the aggregate principal amount collectively
outstanding under the USD term loan facility was $1.6 billion, the
aggregate principal amount outstanding under the JPY term loan
facilities was $1.4 billion and the aggregate committed principal amount
(as of January 31, 2018 this facility remained fully undrawn) under the
USD revolving credit facility will be reduced from $4.5 billion to $3.0
billion. The amendments received the support of lenders holding
approximately 94% of the aggregate loans and undrawn commitments across
the five credit facilities.
The amendments include certain terms and conditions including Teva's
commitment not to distribute common share dividends while its net debt
to EBITDA is above 4.75 times. Additionally, although no prepayment is
required, if Teva decides to make a prepayment using proceeds from
divested assets and/or future indebtedness, then this payment must be
applied on a pro-rata basis between all USD and JPY term loans.
About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is a leading
global pharmaceutical company that delivers high-quality,
patient-centric healthcare solutions used by approximately 200 million
patients in over 60 markets every day. Headquartered in Israel, Teva is
the world’s largest generic medicines producer, leveraging its portfolio
of more than 1,800 molecules to produce a wide range of generic products
in nearly every therapeutic area. In specialty medicines, Teva has the
world-leading innovative treatment for multiple sclerosis as well as
late-stage development programs for other disorders of the central
nervous system, including movement disorders, migraine, pain and
neurodegenerative conditions, as well as a broad portfolio of
respiratory products. Teva is leveraging its generics and specialty
capabilities in order to seek new ways of addressing unmet patient needs
by combining drug development with devices, services and technologies.
Teva's net revenues in 2016 were $21.9 billion. For more information,
visit www.tevapharm.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
regarding amendments to our USD and JPY term loan and revolving credit
facilities, which are based on management’s current beliefs and
expectations and are subject to substantial risks and uncertainties,
both known and unknown, that could cause our future results, performance
or achievements to differ significantly from that expressed or implied
by such forward-looking statements. Important factors that could cause
or contribute to such differences include risks relating to:
-
our substantially increased indebtedness and significantly
decreased cash on hand, which may limit our ability to incur
additional indebtedness, engage in additional transactions or make new
investments, and may result in a further downgrade of our credit
ratings; and our inability to raise debt or borrow funds in amounts or
on terms that are favorable to us;
-
our generics medicines business, including: that we are
substantially more dependent on this business, with its significant
attendant risks, following our acquisition of Allergan plc’s worldwide
generic pharmaceuticals business (“Actavis Generics”); our ability to
realize the anticipated benefits of the acquisition (and any delay in
realizing those benefits) or difficulties in integrating Actavis
Generics; the increase in the number of competitors targeting generic
opportunities and seeking U.S. market exclusivity for generic versions
of significant products; price erosion relating to our generic
products, both from competing products and as a result of increased
governmental pricing pressures; and our ability to take advantage of
high-value biosimilar opportunities;
-
our specialty medicines business, including: competition for our
specialty products, especially Copaxone®, our
leading medicine, which faces competition from existing and potential
additional generic versions and orally-administered alternatives; our
ability to achieve expected results from investments in our product
pipeline; competition from companies with greater resources and
capabilities; and the effectiveness of our patents and other measures
to protect our intellectual property rights;
-
our business and operations in general, including: failure to
effectively execute the recently announced restructuring plan;
uncertainties relating to the potential benefits and success of our
new organizational structure and recent senior management changes; our
ability to develop and commercialize additional pharmaceutical
products; manufacturing or quality control problems, which may damage
our reputation for quality production and require costly remediation;
interruptions in our supply chain; disruptions of our or third party
information technology systems or breaches of our data security; the
impact of continuing consolidation of our distributors and customers;
and variations in patent laws that may adversely affect our ability to
manufacture our products;
-
our ability to consummate dispositions on terms acceptable to us;
adverse effects of political or economic instability, major
hostilities or terrorism on our significant worldwide operations; and
our ability to successfully bid for suitable acquisition targets or
licensing opportunities, or to consummate and integrate acquisitions;
-
compliance, regulatory and litigation matters, including: costs and
delays resulting from the extensive governmental regulation to which
we are subject; the effects of reforms in healthcare regulation and
reductions in pharmaceutical pricing, reimbursement and coverage;
potential additional adverse consequences following our resolution
with the U.S. government of our FCPA investigation; governmental
investigations into sales and marketing practices; potential liability
for sales of generic products prior to a final resolution of
outstanding patent litigation; product liability claims; increased
government scrutiny of our patent settlement agreements; failure to
comply with complex Medicare and Medicaid reporting and payment
obligations; and environmental risks;
-
other financial and economic risks, including: our exposure to
currency fluctuations and restrictions as well as credit risks; the
significant increase in our intangible assets, which may result in
additional substantial impairment charges; potentially significant
increases in tax liabilities; and the effect on our overall effective
tax rate of the termination or expiration of governmental programs or
tax benefits, or of a change in our business;
and other factors discussed in our Annual Report on Form 20-F for the
year ended December 31, 2016 (“Annual Report”), including in the section
captioned “Risk Factors,” and in our other filings with the U.S.
Securities and Exchange Commission, which are available at www.sec.gov
and www.tevapharm.com.
Forward-looking statements speak only as of the date on which they are
made, and we assume no obligation to update or revise any
forward-looking statements or other information contained herein,
whether as a result of new information, future events or otherwise. You
are cautioned not to put undue reliance on these forward-looking
statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180201005700/en/
Source: Teva Pharmaceutical Industries Ltd.
Teva Pharmaceutical Industries Ltd.
IR Contacts:
United States
Kevin
C. Mannix, 215-591-8912
or
Israel
Ran Meir,
972 (3) 926-7516
or
Tomer Amitai, 972 (3) 926-7656
or
PR
Contacts:
Israel
Iris Beck Codner, 972 (3) 926-7208
or
United
States
Kaelan Hollon, 202-412-7076