Obbligazioni societarie HIGH YIELD e oltre, verso frontiere inesplorate - Vol. 2 (11 lettori)

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waltermasoni

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Teva Pharmaceutical Industries Ltd. Proposed Notes Assigned 'BB' Rating; All Ratings On CreditWatch Negative

  • 13-Nov-2019 12:25 EST
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  • Israel-headquartered global specialty and generic drug maker Teva Pharmaceutical Industries Ltd. recently announced a cash tender offer for $1.5 billion of its 2021 maturities at a discount to par value.
  • Teva is also proposing to issue $1.5 billion in senior unsecured notes, due in 2025, denominated in U.S. dollars and Euros.
  • We are assigning our 'BB' rating to the proposed senior unsecured notes, and as we do not believe the tender offer constitutes a distressed debt exchange, our 'BB' long-term issuer credit rating is unchanged.
  • All of our Teva ratings, including those on the proposed unsecured senior notes, are on CreditWatch with negative implications.
  • The CreditWatch, which we instituted on Oct. 24, 2019, reflects the risk that Teva's discounted cost of litigation settlements will exceed $2 billion.

NEW YORK (S&P Global Ratings) Nov. 13, 2019--S&P Global Ratings today took the rating actions listed above.

We consider the cash tender offer an opportunistic and proactive treasury management measure rather than a distressed debt exchange, as we do not expect a conventional debt default in absence of the tender offer. We also think that the company could meet its 2021 maturities by drawing on its $2.3 billion revolving credit facility. Moreover, Teva's liquidity will significantly improve if it successfully places the proposed $1.5 billion of unsecured notes.

We plan to resolve the CreditWatch when we have more certainty that the ultimate settlement to resolve the opioid claims will be more or less than about $2 billion. We expect this to occur in the next four to six months, after the company reports full-year results, issues its 2020 guidance, and we have more certainty on a final settlement framework. We believe revenue growth, additional cost savings, and the change to working capital in 2020 and 2021 are important variables in our forecast, so we could look for more certainty from fourth-quarter 2019 results and 2020 guidance before resolving the CreditWatch.
 

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