Published on 1/22/2004 in the Prospect News Convertibles Daily.
New Issue: Teva sells $1 billion convertibles; Tranche A at 0.5%, up 29%; Tranche B at 0.25%, up 20%
Nashville, Jan. 22 - Teva Pharmaceutical Industries Ltd. sold a combined $1 billion of 20-year convertible senior notes in two parts in an overnight transaction via sole bookrunner Lehman Brothers.
The convertibles priced at the cheap end of guidance.
Tranche A, for $400 million, sold at par to yield 0.5% with a 29% initial conversion premium. It had been talked at 0.25% to 0.5%, up 29% to 35%.
Tranche B, for $600 million, sold at par to yield 0.25% with a 20% initial conversion premium. It had been talked at 0.0% to 0.25%, up 20% to 26%.
Holders will have dividend protection.
There is a $150 million greenshoe available.
The Jerusalem-based generic drugmaker said proceeds would be used to refinance short-term bank borrowings incurred to pay a portion of the purchase price for the pending $3.4 billion acquisition of Sicor Inc. announced Oct. 31.
Terms of the deal are:
Tranche A
| Issuer: | Teva Pharmaceutical Industries Ltd.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Lehman Brothers
|
| Joint lead managers: | Citigroup Global Markets Inc and Credit Suisse First Boston
|
| Co-managers: | Banc of America Securities, Deutsche Bank Securities, Goldman Sachs & Co. and Merrill Lynch
|
| Amount: | $400 million
|
| Maturity: | Feb. 2, 2024
|
| Coupon: | 0.5%
|
| Price: | Par
|
| Yield: | 0.5%
|
| Conversion premium: | 29%
|
| Conversion price: | $75.80
|
| Conversion ratio: | 13.1925
|
| Contingent conversion: | 130%
|
| Call: | Non-callable for 4.5 years
|
| Put: | In years 4.5, 10 and 15
|
| Rating: | S&P: BBB
|
| Price talk: | 0.25-0.5%, up 29-35%
|
| Pricing date: | Jan. 21, after the close
|
| Settlement date: | Jan. 27
|
| Distribution: | Registered
|
|
|
| Tranche B
|
| Issuer: | Teva Pharmaceutical Industries Ltd.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Lehman Brothers
|
| Joint lead managers: | Citigroup Global Markets Inc and Credit Suisse First Boston
|
| Co-managers: | Banc of America Securities, Deutsche Bank Securities, Goldman Sachs & Co. and Merrill Lynch
|
| Amount: | $600 million
|
| Maturity: | Feb. 1, 2024
|
| Coupon: | 0.25%
|
| Price: | Par
|
| Yield: | 0.25%
|
| Conversion premium: | 20%
|
| Conversion price: | $70.51
|
| Conversion ratio: | 14.1819
|
| Contingent conversion: | 130%
|
| Call: | Non-callable for 6 years
|
| Put: | In years 6, 10 and 15
|
| Rating: | S&P: BBB
|
| Price talk: | 0.0-0.25%, up 20-26%
|
| Pricing date: | Jan. 21, after the close
|
| Settlement date: | Jan. 27
|
| Distribution: | Registered
|
|
|
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