FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


Citibank Agents Amendment to TEVA Credit Facilities

September 20, 2017, 07:10 AM
Filed Under: Pharmaceuticals

Teva Pharmaceutical Industries Ltd., 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.

According to a regulatory filing, Citibank served as administrative agent to the deal.

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.”

Week's News

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.