Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) announced that it has entered into commitment letters relating to its pending acquisition of Allergan’s generic pharmaceuticals business with Bank of America Merrill Lynch, Barclays Bank PLC, BNP Paribas, Citi, Credit Suisse, HSBC, Mizuho Bank, Morgan Stanley Senior Funding, Inc., RBC Capital Markets and Sumitomo Mitsui Banking Corporation.
Pursuant to the commitment letters, the lenders have committed to provide Teva (i) up to$27,000,000,000 in loans under a senior unsecured Bridge Loan Credit Facility and (ii) up to$6,750,000,000 in loans under an Equity Bridge Loan Credit Facility. The commitments of the lenders are subject to customary conditions, including the negotiation of definitive financing agreements and other conditions as set forth in the commitment letters.
“With this commitment, we have secured financing for our proposed acquisition of Allergan’s generic pharmaceuticals business,” stated Eyal Desheh, Teva’s Chief Financial Officer. “We appreciate the strong support we received which stems from the compelling economics of this transaction.” (Original Source)
Shares of Teva Pharmaceutical Industries opened today at $69.58 and are currently trading down at $68.69. TEVA has a 1-year high of $72.31 and a 1-year low of $47.36. The stock’s 50-day moving average is $62.42 and its 200-day moving average is $60.46.
On the ratings front, Teva has been the subject of a number of recent research reports. In a report released today, Bernstein Research analyst Ronny Gal maintained a Buy rating on TEVA, with a price target of $80, which represents a potential upside of 15.0% from where the stock is currently trading. Separately, on July 29, RBC’s Michael Yee reiterated a Buy rating on the stock and has a price target of $85.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Ronny Gal and Michael Yee have a total average return of 3.4% and 12.4% respectively. Gal has a success rate of 50.0% and is ranked #2375 out of 3721 analysts, while Yee has a success rate of 71.1% and is ranked #209.
Overall, one research analyst has assigned a Hold rating, while 7 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $73.00 which is 4.9% above where the stock opened today.
Teva Pharmaceutical Industries Ltd develops, produces and markets generic, branded & OTC medicines. Some of its products are Copaxone, Azilect & Provigil.