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Debt obligations
 3 Months Ended
Mar. 31, 2019
Debt obligations
NOTE 11 —Debt obligations:
a. Short-term debt:
 
 
 
Weighted average 
interest rate as of
March 
31, 2019
 
 
Maturity
 
 
March 31,

2019
 
 
December 31,

2018
 
 
 
 
 
 
 
 
 
(U.S. $ in millions)
 
Bank and financial institutions
 
 
6.94
%
 
 
—
 
 
$
2
 
 
$
2
 
Convertible debentures
 
 
0.25
%
 
 
2026
 
 
 
514
 
 
 
514
 
Current maturities of long-term liabilities
 
 
 
 
 
 
 
 
 
 
2,274
 
 
 
1,700
 
Total short term debt
 
 
 
 
 
 
 
 
 
$
2,790
 
 
$
2,216
 
 
Long-term debt:
 
 
 
Weighted average interest

rate as of March 31, 2019
 
 
Maturity
 
 
March 31,

2019
 
 
December 31,

2018
 
 
 
%
 
 
 
 
 
(U.S. $ in millions)
 
Senior notes EUR 1,660 million
 
 
0.38
% 
 
 
2020
 
 
$
1,860
 
 
$
1,897
 
Senior notes EUR 1,500 million
 
 
1.13
% 
 
 
2024
 
 
 
1,674
 
 
 
1,707
 
Senior notes EUR 1,300 million
 
 
1.25
% 
 
 
2023
 
 
 
1,452
 
 
 
1,480
 
Senior notes EUR 900 million
 
 
4.50
% 
 
 
2025
 
 
 
1,010
 
 
 
1,029
 
Senior notes EUR 750 million
 
 
1.63
% 
 
 
2028
 
 
 
834
 
 
 
850
 
Senior notes EUR 700 million
 
 
3.25
% 
 
 
2022
 
 
 
785
 
 
 
801
 
Senior notes EUR 700 million
 
 
1.88
% 
 
 
2027
 
 
 
783
 
 
 
798
 
Senior notes USD 3,500 million
 
 
3.15
% 
 
 
2026
 
 
 
3,493
 
 
 
3,493
 
Senior notes USD 3,000 million
 
 
2.20
% 
 
 
2021
 
 
 
2,998
 
 
 
2,997
 
Senior notes USD 3,000 million
 
 
2.80
% 
 
 
2023
 
 
 
2,994
 
 
 
2,993
 
Senior notes USD 1,574 million (1)
 
 
1.70
% 
 
 
2019
 
 
 
1,574
 
 
 
1,700
 
Senior notes USD 2,000 million
 
 
4.10
% 
 
 
2046
 
 
 
1,985
 
 
 
1,985
 
Senior notes USD 1,250 million
 
 
6.00
% 
 
 
2024
 
 
 
1,250
 
 
 
1,250
 
Senior notes USD 1,250 million
 
 
6.75
% 
 
 
2028
 
 
 
1,250
 
 
 
1,250
 
Senior notes USD
844
 million
 
 
2.95
% 
 
 
2022
 
 
 
859
 
 
 
860
 
Senior notes USD
789
 million
 
 
6.15
% 
 
 
2036
 
 
 
782
 
 
 
782
 
Senior notes USD
700
 million
 
 
2.25
% 
 
 
2020
 
 
 
700
 
 
 
700
 
Senior notes USD
613
 million
 
 
3.65
% 
 
 
2021
 
 
 
620
 
 
 
621
 
Senior notes USD
588
 million
 
 
3.65
% 
 
 
2021
 
 
 
587
 
 
 
587
 
Senior notes CHF
350
 million
 
 
0.50
% 
 
 
2022
 
 
 
352
 
 
 
356
 
Senior notes CHF
350
 million
 
 
1.00
% 
 
 
2025
 
 
 
352
 
 
 
356
 
Fair value hedge accounting adjustments
 
 
 
 
 
 
 
 
 
 
(6
)
 
 
(9
)
Total senior notes
 
 
 
 
 
 
 
 
 
 
28,188
 
 
 
28,483
 
Other long term debt
 
 
4.58
%
 
 
2026
 
 
 
13
 
 
 
12
 
Less current maturities
 
 
 
 
 
 
 
 
 
 
(2,274
)
 
 
(1,700
)
Derivative instruments
 
 
 
 
 
 
 
 
 
 
6
 
 
 
9
 
Less debt issuance costs
 
 
 
 
 
 
 
 
 
 
(99
)
 
 
(104
)
Total senior notes and loans
 
 
 
 
 
 
 
 
 
$
25,834
 
 
$
26,700
 
 
 
(1)
During the first quarter of 2019, Teva repurchased and canceled approximately $126 million principal amount of its $1,700 million 1.7% senior notes due in July 2019. 
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 March 31, 2019 is effectively denominated (taking into consideration cross currency swap agreements) in the following currencies: U.S. dollar
66
%, euro
31
% 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 $2.3 billion revolving credit facility (“RCF”). 
In April 2019, the Company entered into a $2.3 billion unsecured syndicated revolving credit facility, which replaced the previous $3 billion revolving credit facility. The RCF contains certain covenants, including certain limitations on incurring liens and indebtedness and maintenance of certain financial ratios, including a maximum leverage ratio, which becomes more restrictive over time. As of March 31, 2019, the Company did not have any outstanding debt under its then-applicable RCF, which was its only debt subject to a maximum leverage ratio, and met all financial covenants thereunder.
Teva expects that it will continue to have sufficient cash resources to support its debt service payments and all other financial obligations for at least twelve months from the date of this report.