Teva Secures $33.75 Bln Financing Commitment

(RTTNews) - Israel-based Teva Pharmaceutical Industries Ltd (TEVA) on Friday said it has entered into commitment letters relating to its pending acquisition of Allergan's generic pharmaceuticals business with Bank of America Merrill Lynch, Barclays Bank PLC, BNP Paribas, Citi, Credit Suisse, HSBC, Mizuho Bank, Morgan Stanley Senior Funding, Inc., RBC Capital Markets and Sumitomo Mitsui Banking Corporation.

Pursuant to the commitment letters, the lenders have committed to provide Teva (i) up to $27 billion in loans under a senior unsecured Bridge Loan Credit Facility and (ii) up to $6.75 billion in loans under an Equity Bridge Loan Credit Facility.

The commitments of the lenders are subject to customary conditions, including the negotiation of definitive financing agreements and other conditions as set forth in the commitment letters.

"With this commitment, we have secured financing for our proposed acquisition of Allergan's generic pharmaceuticals business," stated Eyal Desheh, Teva's Chief Financial Officer. "We appreciate the strong support we received which stems from the compelling economics of this transaction."

Earlier this month, Teva agreed with Allergan Plc (AGN) to acquire Allergan Generics in a cash and stock transaction valued at $40.5 billion.

Teva believes the acquisition will significantly add to adjusted earnings per share, including expected double digit adjusted earnings per share accretion in 2016 and more than 20 percent accretion in year two and year three following the close of the transaction.

Allergan will receive $33.75 billion in cash and shares of Teva valued today at $6.75 billion, representing an estimated under 10 percent ownership stake in Teva.

The transaction is expected to close in the first quarter of 2016.