01—Abstract
Summary
Summary of the 8-K filed December 11, 2025. Cited figures are marked; the original filing is the authoritative source.
Teva Pharmaceutical Industries Limited reported in this Form 8-K, filed December 11, 2025, that on December 10, 2025 it obtained lender consent to extend the stated maturity of its Revolving Facility Agreement from April 29, 2027 to April 29, 2028.
The extension is the second of two one-year extensions the company may request under the Senior Unsecured Sustainability-Linked Revolving Credit Agreement dated April 29, 2022, with Bank of America, N.A. as administrative agent. The Third Amendment also changes the financial covenants. The maximum permitted leverage ratio is 4.25xa for Q4 2025 and thereafter, subject to certain increases if the company consummates or commences specified material transactions.
If Teva obtains Investment Grade Status and no Event of Default is continuing, the company and its subsidiaries will no longer be subject to the maximum leverage ratio or the minimum interest cover ratio covenants. If Investment Grade Status is lost or an Event of Default occurs, those covenants are reinstated and apply to future testing dates. The filing incorporates the amendment as Exhibit 10.1 and states that the representations, warranties and covenants in it were made solely for the contracting parties and should not be relied on by investors as statements of the actual state of facts.
02—Key points
Key Highlights
- Revolving facility maturity extended from April 29, 2027 to April 29, 2028, effective with lender consent obtained December 10, 2025
- This is the second of two one-year maturity extensions available under the 2022 Senior Unsecured Sustainability-Linked Revolving Credit Agreement
- Maximum permitted leverage ratio set at 4.25x for Q4 2025 and thereafter, subject to increases tied to certain material transactions
- Leverage ratio and minimum interest cover ratio covenants fall away if Teva obtains Investment Grade Status with no continuing Event of Default
- Covenants are reinstated if Investment Grade Status is lost or an Event of Default occurs and continues
- Bank of America, N.A. serves as administrative agent for the facility
- The amendment is filed as Exhibit 10.1 and the filing is also tagged with Cover Page Interactive Data (Exhibit 104)
03—Questions
Frequently Asked Questions
What changed in Teva's revolving credit facility?
The stated maturity was extended from April 29, 2027 to April 29, 2028, and certain financial covenant terms were amended through the Third Amendment, dated December 10, 2025.
What is the new leverage covenant level?
The maximum permitted leverage ratio is 4.25x for Q4 2025 and thereafter, subject to certain increases if the company consummates or commences certain material transactions.
When would the leverage and interest cover covenants no longer apply?
If Teva obtains Investment Grade Status and no Event of Default is continuing under the Revolving Facility Agreement, the company and its subsidiaries will not be subject to the maximum leverage ratio or minimum interest cover ratio covenants.
Could those covenants come back into effect?
Yes. If Teva ceases to have Investment Grade Status or an Event of Default occurs and continues, the maximum leverage ratio and minimum interest cover ratio covenants will be reinstated and apply to future testing dates.
Does this filing report any new borrowing or financial results?
The filing describes an amendment to the existing revolving facility, incorporated under Item 2.03 by reference to Item 1.01. It does not state any drawn amount, new borrowing, or financial results.
04—Continue