Teva Pharmaceutical Industries Ltd. launched tender offers to buy certain of its senior notes for a combined aggregate purchase price of up to $400 million.
The Israeli drugmaker will buy 1.700% senior notes due 2019, 0.375% senior notes due 2020 and 2.250% senior notes due 2020, which had a principal amount outstanding of $2.00 billion, €1.75 billion and $700.0 million, respectively.
The principal amount outstanding that can be bought in the tender offers was capped at $300.0 million for the 1.700% notes, €100.0 million for the 0.375% notes and $50.0 million for the 2.250% notes.
For every $1,000 or €1,000 of the principal amount, Teva is offering to pay a total consideration of $987.50 for the 1.700% notes, €987.50 for the 0.375% notes and $977.50 for the 2.250% notes.
The company said the offers, which will be funded with available cash on hand, will help reduce its total debt and overall interest expense.
The offers are expected to expire Oct. 1, with Oct. 3 expected to be the final settlement date, Teva said in a Sept. 4 news release.
Mizuho Securities USA LLC and Morgan Stanley & Co. LLC are acting as dealer managers for the offer.