NOTE 11 – Debt obligations:

Short-term debt:


	Weighted average interest rate as of September 30, 2018		Maturity			September 30, 2018		December 31, 2017
						(U.S. $ in millions)
Term loan JPY 28.3 billion ⁽⁵⁾		JPY LIBOR+0.25%		2018		$	—	$	251
Convertible debentures		0.25%		2026	*		514		514
Other		9.37%		2018			1		1
Current maturities of long-term liabilities							2,158		2,880

Total short term debt						$	2,673	$	3,646

*	Net-share settlement feature exercisable at any time.

Senior notes and loans:


	Weighted average interest rate as of September 30, 2018		Maturity		September 30, 2018			December 31, 2017
	%				(U.S. $ in millions)
Senior notes EUR 1,660 million ⁽⁸⁾		0.38%		2020	$	1,924		$	2,095
Senior notes EUR 1,500 million		1.13%		2024		1,731			1,788
Senior notes EUR 1,300 million		1.25%		2023		1,501			1,550
Senior notes EUR 1,000 million ⁽³⁾		2.88%		2019		—			1,199
Senior notes EUR 900 million ⁽¹⁾		4.50%		2025		1,045			—
Senior notes EUR 750 million		1.63%		2028		863			891
Senior notes EUR 700 million ⁽¹⁾		3.25%		2022		812			—
Senior notes EUR 700 million		1.88%		2027		810			837
Senior notes USD 3,500 million		3.15%		2026		3,493			3,492
Senior notes USD 3,000 million		2.20%		2021		2,997			2,996
Senior notes USD 3,000 million		2.80%		2023		2,993			2,992
Senior notes USD 1,700 million ⁽⁸⁾		1.70%		2019		1,700			2,000
Senior notes USD 2,000 million		4.10%		2046		1,984			1,984
Senior notes USD 1,500 million ⁽³⁾		1.40%		2018		—			1,500
Senior notes USD 1,250 million ⁽²⁾		6.00%		2024		1,250			—
Senior notes USD 1,250 million ⁽²⁾		6.75%		2028		1,250			—
Senior notes USD 844 million		2.95%		2022		862			864
Senior notes USD 789 million		6.15%		2036		782			781
Senior notes USD 700 million		2.25%		2020		700			700
Senior notes USD 613 million		3.65%		2021		622			624
Senior notes USD 588 million		3.65%		2021		587			587
Senior notes CHF 450 million		1.50%		2018		458			461
Senior notes CHF 350 million		0.50%		2022		357			360
Senior notes CHF 350 million		1.00%		2025		357			360
Senior notes CHF 300 million ⁽⁹⁾		0.13%		2018		—			308
Fair value hedge accounting adjustments						(24	)		(2	)

Total senior notes						29,054			28,367
Term loan USD 2.5 billion ⁽⁴⁾		LIBOR +1.1375%		2018		—			285
Term loan USD 2.5 billion ⁽⁴⁾		LIBOR +1.50%		2017-2020		—			2,000
Term loan JPY 58.5 billion ⁽⁵⁾		JPY LIBOR +0.55%		2022		—			519
Term loan JPY 35 billion ⁽⁶⁾		1.42%		2019		—			311
Term loan JPY 35 billion ⁽⁶⁾		JPY LIBOR +0.3%		2018		—			311

Total loans						—			3,426
Debentures USD 15 million ⁽⁷⁾		7.20%		2018		—			15
Other		7.78%		2026		6			5

Total debentures and others						6			20

Less current maturities						(2,158	)		(2,880	)
Derivative instruments						24			2
Less debt issuance costs						(110	)		(106	)

Total senior notes and loans					$	26,816		$	28,829

(1)	In March 2018, Teva Pharmaceutical Finance Netherlands II B.V., a Teva finance subsidiary, issued senior notes in an aggregate principal amount of €1.6 billion.

(2)	In March 2018, Teva Pharmaceutical Finance Netherlands III B.V., a Teva finance subsidiary, issued senior notes in an aggregate principal amount of $2.5 billion.

(3)	In March 2018, Teva redeemed in full its $1.5 billion 1.4% senior notes due in July 2018 and its €1.0 billion 2.88% senior notes due in April 2019.

(4)	During the first quarter of 2018, Teva prepaid approximately $2.3 billion principal amount of the remaining term loan facilities.

(5)	During the first quarter of 2018, Teva prepaid in full JPY 86.8 billion principal amount of the outstanding term loan facilities of which JPY 28.3 billion were in short-term debt as of December 31, 2017.

(6)	During the first quarter of 2018, Teva prepaid in full JPY 70 billion of its 1.42% and JPY LIBOR+0.3% outstanding term loans.

(7)	During the first quarter of 2018, Teva prepaid in full $15 million of its outstanding debentures.

(8)	In September 2018, Teva consummated a cash tender offer for certain of its outstanding senior notes. As a result of the offer, Teva redeemed $300 million aggregate principal amount of its 1.7% senior notes and €90 million principal amount of its 0.38% senior notes.

(9)	In July 2018, Teva repaid at maturity CHF 300 million of its 0.13% senior notes.

Long term debt was issued by several indirect wholly-owned subsidiaries of the Company and is fully and unconditionally guaranteed by the Company as to payment of all principal, interest, discount and additional amounts (as defined), if any.

Long term debt as of September 30, 2018 is effectively denominated (taking into consideration cross currency swap agreements) in the following currencies: U.S. dollar 63%, euro 34% and Swiss franc 3%.

Teva’s principal sources of short-term liquidity are its existing cash investments, liquid securities and available credit facilities, primarily its $3 billion syndicated revolving credit facility (“RCF”), which was not utilized as of September 30, 2018, as well as internally generated funds. In connection with the requirements of the RCF, the Company entered into negative pledge agreements with certain banks and institutional investors. Under the agreements, the Company and its subsidiaries have undertaken not to register floating charges on assets in favor of any third parties without the prior consent of the banks, to maintain certain financial ratios, including the requirement to maintain compliance with a net debt to EBITDA ratio, which becomes more restrictive over time, and to fulfill other restrictions, as stipulated by the agreements. As of September 30, 2018, the Company did not have any outstanding debt under the RCF, which is its only debt subject to the net debt to EBITDA covenant. Assuming utilization of the RCF, and under specified circumstances, including non-compliance with such covenants and the unavailability of any waiver, amendment or other modification thereto and the expiration of any applicable grace period thereto, substantially all of the Company’s debt could be negatively impacted by non-compliance with such covenants. The Company has sufficient resources to meet its financial obligations in the ordinary course of business for at least twelve months from the date of the release of this quarterly report.