Teva’s Working With Evercore to Review Debt Options
Teva Pharmaceutical Industries Ltd.’s new Chief Executive Officer Kare Schultz is working with advisory firm Evercore Inc. to review options for the beleaguered drugmaker’s outstanding debt, according to people familiar with the matter.
Executives from the Israeli company including Chief Financial Officer Mike McClellan have met with the main lenders in recent weeks to assess options including shrinking a revolving credit facility and extending the repayment period for some loans, the people said, asking not to be identified because the deliberations are private. Teva may also seek to reset some debt covenants and extend bond maturities, the people said. The stock rose in New York.The world’s biggest maker of copycat drugs, saddled with almost $35 billion in debt, may launch the refinancing plans as early as in January, the people said. No final decision has been made on the debt proposals, which may change or include other options, the people said. While lenders realize the company will take at least two or three years to recover, they are welcoming efforts to reduce debt load and cut expenses, the people said.
“We’re in constant discussions with our banks and rating agencies and prudently taking all measures to address our financial situation,” a spokeswoman for Petach Tikva, Israel-based Teva said in response to questions. A representative for Evercore didn’t immediately return calls seeking comment.
Read More: http://bit.ly/TevaEvercore
Executives from the Israeli company including Chief Financial Officer Mike McClellan have met with the main lenders in recent weeks to assess options including shrinking a revolving credit facility and extending the repayment period for some loans, the people said, asking not to be identified because the deliberations are private. Teva may also seek to reset some debt covenants and extend bond maturities, the people said. The stock rose in New York.The world’s biggest maker of copycat drugs, saddled with almost $35 billion in debt, may launch the refinancing plans as early as in January, the people said. No final decision has been made on the debt proposals, which may change or include other options, the people said. While lenders realize the company will take at least two or three years to recover, they are welcoming efforts to reduce debt load and cut expenses, the people said.
“We’re in constant discussions with our banks and rating agencies and prudently taking all measures to address our financial situation,” a spokeswoman for Petach Tikva, Israel-based Teva said in response to questions. A representative for Evercore didn’t immediately return calls seeking comment.
Read More: http://bit.ly/TevaEvercore
