With the close of its $40 billion acquisition of Allergan’s generic unit nearing, Teva is drumming up some financing.
The Israeli generics giant plans to raise between $20 billion and $25 billion next week, Israeli newspaper Globes reports. In an SEC filing, the company said it would conduct investor calls in the U.S. this week and meetings in Europe next week ahead of a potential bond sale, and it’s brought on Barclays, Bank of America Merrill Lynch, BNP Paribas, Credit Suisse, HSBC and Mizuho to arrange the process.
The company is readying itself to seal the deal, which it struck last July. While the companies originally expected the acquisition to be wrapped by this year’s Q1, close scrutiny from U.S. antitrust regulators has forced the pair to extend their deadline and make a series of cast-offs.
Now, though, CEO Erez Vigodman expects to close the acquisition “at any time now,” he told investors on a Wednesday conference call. Other than the pending FTC go-ahead, “we are not aware of anything that would be expected to prevent the closing of this transaction,” he said.
Teva’s expecting big things from the buyout, which will solidify its place at the top of the generics heap. Wednesday, it predicted it could rake in $22 billion to $22.5 billion in 2016 revenue; $25.2 billion to $26.2 billion in 2017 revenue; $25.8 billion to $26.9 billion in 2018 revenue; and $26.7 billion to $27.8 billion in 2019 revenue, numbers Bernstein analyst Ronny Gal called “high.”
“If Teva is able to meet the expectations they projected today, then we’ll be seeing fantastic execution,” he wrote in a note to clients, noting that it’s “now a confidence-building exercise to show they can meet numbers.”
Teva expects Allergan deal close any day, it says while lifting guidance
Analyst cuts Allergan generics sales estimates as Teva deal close nears
Teva, Allergan generics deal on track to close in June: Analyst
Teva hits roadblock in Allergan buy, hindering 'Pfizergan'
Teva speeds toward Allergan deal close with EU thumbs up
Teva mulls $7B stock offering to help fund Allergan generics buy
Forget Mylan: Teva inks $40B-plus pact for Allergan's generics biz