Amendment Recasts Leverage Ratio Covenant Requirements
Teva Pharmaceutical Industries Ltd., (NYSE and TASE: TEVA) today announced amendments to its USD and JPY term loan and revolving credit facilities, providing Teva greater flexibility in its financial leverage ratio covenants. The amended leverage ratio covenants in the credit agreements permit a maximum leverage ratio of 5.0 times through and including December 31, 2018, gradually declining to 3.5 times by December 31, 2020.
As of June 30, 2017, the aggregate principal amount collectively outstanding under the USD term loan facility was $5.0 billion, the aggregate principal amount outstanding under the JPY term loan facilities was $1.4 billion and the aggregate committed principal amount (drawn and available) under the USD revolving credit facility was $4.5 billion. The amendments received the support of lenders holding approximately 98% of the aggregate loans and undrawn commitments across the five credit facilities.
The amendments include certain terms and conditions, such as an increase to the applicable margin and, in the case of the revolving credit facility, an increase to the commitment fee, in each case in the event of a downgrade of Teva’s credit rating, and payment of amendment fees.
Michael McClellan, interim Chief Financial Officer of Teva, stated, “We are pleased to announce the amendments to our credit facilities showing a strong support from our lending group. These amendments are an important part of Teva’s plan to obtain longer term flexibility with our credit facilities and manage Teva’s capital structure.”
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 the disposition of the Company's U.S. emergency contraception and international women’s health portfolios 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:
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.
Teva Pharmaceutical Industries Ltd.
Kevin C. Mannix, 215-591-8912
Ran Meir, 215-591-3033
Tomer Amitai, 972 (3) 926-7656
Iris Beck Codner, 972 (3) 926-7208
Denise Bradley, 215-591-8974
Michelle Larkin, 610-786-7335