Market Overview

Teva Completes Amendment to Credit Facilities

Share:

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."

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 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:

  • 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 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 downgrade of our credit ratings;
  • our business and operations in general, including: uncertainties
    relating to our 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
    failure to recruit or retain key personnel, including those who joined
    us as part of the Actavis Generics acquisition; the restructuring of
    our manufacturing network, including potential related labor unrest;
    the impact of continuing consolidation of our distributors and
    customers; 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 Comments and Join the Discussion!