Teva Pharmaceutical’s US$7.4bn equity and US$20.4bn debt financing



Rothschild Global Advisory and AC ADV INC acted as independent financial adviser to Teva Pharmaceutical Industries Ltd. on the landmark financing package to support its US$40.5bn acquisition of Allergan's worldwide generics business. 

Teva Pharmaceutical Industries is the largest Israeli company and one of the ten largest pharmaceuticals companies worldwide. Its acquisition of Allergan's generics business cements its position as the world's largest producer of generic medicines and creates the strongest research and development pipeline in the market.

Rothschild Global Advisory was appointed to a unique independent advisory position to provide an unbiased opinion on all aspects of the multi-stage financing, which was to consist of equity, debt and mandatory convertible securities. This was a global financing process with engagement across multiple markets and currencies. The financing led by Teva's management involved a large number of bookrunners and required close management to ensure effective communication and enable smooth execution. Careful timing of the different offerings was crucial, taking into consideration key geopolitical events including the Brexit vote and US election, and the announcements of central banks.

Rothschild Global Advisory mobilised a team from Paris, New York, Tel Aviv and London to advise on the simultaneous debt and equity workstreams, issued in three different currencies. Successful roadshows generated exceptional demand from high-quality investors.

This successful transaction underscores Rothschild Global Advisory's ability to provide independent advice across the entire capital structure in high-profile, cross-border situations.

The US$7.4bn equity offering represents the largest ever in Israel and second largest for the Healthcare sector; the debt offering's USD issue was the largest ever emerging market corporate deal.