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Teva upsizes senior notes offering to repay debt

Teva Pharmaceutical Industries Ltd. priced a $4.5 billion senior notes offering, which was also upsized from $3.5 billion of notes.

The Israeli generic-drug manufacturer will use net proceeds to help repay about $2.3 billion in outstanding U.S. dollar and Japanese yen term loans, as well as fully redeem $1.5 billion of its 1.40% senior notes due 2018 and $1.2 billion of its 2.875% senior notes due 2019.

Under the offering, Teva will issue $1.25 billion of 6.000% senior notes maturing in 2024 and $1.25 billion of 6.750% senior notes maturing in 2028, as well as €700 million of 3.250% senior notes maturing in 2022 and €900 million of 4.500% senior notes maturing in 2025.

The company said its special purpose finance subsidiaries will issue the notes, which are expected to settle on or about March 14, subject to customary closing conditions.

Teva is working to pay down debt through a two-year cost-cutting plan, under which it aims to reduce its cost base by $3 billion. In 2017, the company's estimated cost base was $16.1 billion.