[TEVA PHARMACEUTICAL FINANCE NETHERLANDS III] 

Teva Pharmaceutical Finance Netherlands III BV (TEVA) exp Baa3/BBB-/BBB- (s/s/s) US$3.2bn  SEC registered 3-pt sr unsec notes (L5y FXD due 1/16/32, L7y FXD due 1/16/34 and L10y FXD due 1/16/37). MWC then 1mo par call on L5y (12/16/31), 2mos on L7y (11/16/33) and 3mos on L10y (10/16/36). 101 CoC. BNP/Citi/GS (B&D)/JPM joint active books. Passive: BofA/HSBC/Miz. Gtd by Teva Pharmaceutical Industries Ltd. Sale into Canada: Alberta, BC, Ontario, Quebec. Denoms: 200,000 x 1,000. UoP: Teva intends to use the net proceeds of this offering, together with cash on hand, (i) to fund the Conditional Redemptions (ii) to pay fees and expenses in connection therewith and (iii) to the extent of any remaining proceeds, for general corporate purposes, including the repayment of outstanding debt upon maturity, tender offer or earlier redemption. Marketing: https://dealroadshow.finsight.com Passcode: TEVA26. Pricing 09/09. Settle 09/16 (T+5).
L5y ISIN: US881937AB24.
L7y ISIN: US88167AAU51.
L10y ISIN: US88167AAV35.

VIA BNP/Citi/GS (B&D)/JPM joint active books. Passive: BofA/HSBC/Miz

Announced as benchmark, final size came in at $3.2bn with price progression as follows:

L5YR  - IPT 115a; GDNC 85#; PXD $1.2bn 5.250% 1/16/32 98.993 5.472% T+85.
L7YR – IPT 130a; GDNC 100#; PXD $1bn 5.500% 1/16/34 98.659 5.728% T+100.
L10yr – IPT 140a; GDNC 110#; PXD $1bn 5.750% 1/16/37 98.520 5.945% T+110 

TEVA received a notable upgrade recently from S&P on 9/4/26 to BBB- from BB+. Moody’s also assigned TEVA a Baa3 rating on 8/11/26, moving it up from Ba1. Fitch took the issuer to investment grade on 5/15/26 – moving it to BBB- from BB+.  This is the first IG bond from TEVA Pharmaceutical Industries since 2016.

As for r/v, outstanding TEVA was quoted as follows:

Teva Pharmaceutical Industries (Baa3/BBB-/BBB-) - Sr Unsecured
-TEVA 7.875% due 09/15/29 T+80bp (G81; $106.65) - $398mm outstanding
-TEVA 5.750% due 12/01/30 T+79bp (G84; $101.41) - $700mm pxd MAY 2025
-TEVA 8.125% due 09/15/31 T+79bp (G80; $111.56) - $500mm pxd MAR 2023
-TEVA 6.000% due 12/01/32 T+103bp (G98; $102.05) - $500mm pxd MAY 2025
-TEVA 6.150% due 02/01/36 T+110bp (G112; $101.86) - $1bn pxd JAN 2026
-TEVA 4.100% due 10/01/46 T+124bp (G124; $73.40) - $2bn pxd JUL 2016

* L10YR – Feb ‘36s G112 + 3bp curve =T+115bp At the T+110bp pricing level, L10YR CONCESSION IS NEG 5BP.
* L7YR – L10yr f/v T+115bp; minus 10bp 7s/10s = T+105bp.  At the T+100bp pricing level, L7YR CONCESSION IS NEG 5BP
* L5YR – L7YT  f/v T+105bp minus 15bp 5s/7s – T+90bp.  At the T+85bp pricing level, L5YR CONCESSION IS NEG 5BP.

Bottom line, this new 9-B credit essentially re-racked its curve today.

COMPS AWAY:

Zoetis (A3/BBB+) - Sr Unsecured
-ZTS 4.150% due 08/17/28 T+35bp (G36; $98.86) - $850mm
-ZTS 5.000% due 08/17/35 T+76bp (G80; $96.05) - $1bn

Amgen (Baa1/BBB+/BBB+) - Sr Unsecured
-AMGN 4.200% due 02/19/31 T+50bp (G53; $96.49) - $1bn
-AMGN 4.850% due 02/19/36 T+73bp (G75; $95.00) - $1.75bn
-AMGN 5.500% due 02/19/46 T+82bp (G84; $93.46) - $500mm
-AMGN 5.650% due 02/19/56 T+92bp ($93.00) - $750mm

Regeneron Pharmaceuticals (Baa1/BBB+) - Sr Unsecured
-REGN 1.750% due 09/15/30 T+60bp (G65; $87.67) - $1.25bn
-REGN 2.800% due 09/15/50 T+92bp ($58.09) - $750mm

Takeda US Finance (Baa1/BBB+) - Sr Unsecured
-TACHEM 5.200% due 07/07/35 T+80bp (G85; $97.19) - $1.65bn
-TACHEM 5.900% due 07/07/55 T+94bp ($96.14) - $750mm

Biogen (Baa2/BBB+) - Sr Unsecured
-BIIB 5.050% due 01/15/31 T+51bp (G54; $99.79) - $400mm
-BIIB 5.750% due 05/15/35 T+74bp (G80; $101.35) - $650mm
-BIIB 6.450% due 05/15/55 T+102bp ($102.38) - $700mm

Royalty Pharma (Baa2/BBB/BBB) - Sr Unsecured
-RPRX 4.450% due 03/25/31 T+65bp (G67; $96.83) - $600mm
-RPRX 5.200% due 09/25/35 T+89bp (G93; $96.52) - $900mm
-RPRX 5.950% due 09/25/55 T+102bp ($95.77) - $500mm

Viatris (Baa3/BB+/BBB) - Sr Unsecured
-VTRS 2.700% due 06/22/30 T+89bp (G95; $90.61) - $1.45bn
-VTRS 4.000% due 06/22/50 T+161bp (G161; $66.70) - $2bn

Medline Industries (Ba1/BBB-/BBB) - Secured
-MEDIND 5.000% due 06/15/31 T+87bp (G88; $98.07) - $1.25bn
-MEDIND 5.250% due 06/15/33 T+94bp (G95; $97.86) - $750mm

FINAL BOOKS:

$1.20bn L5yr - $3.25bn (2.71x) - PEAK $5.50bn (ATT -40.91%)

$1.00bn L7yr - $3.65bn (3.65x) - PEAK $5.80bn (ATT -37.07%)

$1.00bn L10yr - $4.10bn (4.10x) - PEAK $6.90bn (ATT -40.58%)