Taro Pharmaceutical Industries Ltd. announced the completion of its previously announced offering of $60 million in long-term, non-convertible debt to certain banks and institutional investors in Israel.
Approximately $45 million of the debt issued in the offering carries a fixed annual interest rate of six percent and the balance bears a fluctuating annual interest rate of LIBOR + 2.25 percent. The principal amount and interest payments are in US dollars.
There will be five equal annual repayments of principal, between 2006-2010. Interest payments will be made semi-annually. The debt has an "AA" rating from Maalot, the Israeli affiliate of Standard & Poor's, based on the rating standard employed in Israel.
Of the $60 million, three major Israeli banks each invested $10 million in the offering. The remaining $30 million was oversubscribed and allocated to additional banks and institutional investors.
Taro plans to utilize the proceeds from the debt offering for capital investments, potential acquisitions and for general corporate purposes. Taro is a multinational, science-based pharmaceutical company developing, manufacturing and marketing healthcare products. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
