v3.26.1
Debt obligations
 6 Months Ended
Jun. 30, 2026
Debt obligations
NOTE 7 —Debt obligations:

 
a.
Short-term debt:
 
    
Weighted average
interest rate as of
December 31, 2025
    
Maturity
     
June 30,
2026
     
December 31,
2025
  
                 
(U.S. $ in millions)
  
Convertible debentures (1)
      0.25 %      2026      $ — 
 
 		    $ 23  
Current maturities of long-term liabilities
 
      4,500        1,798  
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
Total short-term debt
 
    $
 
 
 
 
 4,500      $ 1,820  
 
 
  
 
 
 
  
 
 
 
 
(1)
In February 2026, Teva repaid $23 million of the 0.25% convertible senior debentures at maturity.
 
b.
Long-term debt:
 
    
Interest rate as of
June 30, 2026
    
Maturity
     
June 30,
2026
    
December 31,
2025
  
                 
(U.S. $ in millions)
  
Senior notes USD 3,500 million
      3.15 %      2026        1,798       1,798  
Senior notes EUR 700 million
      1.88 %      2027        798       823  
Sustainability-linked senior notes USD 1,000 million (1)
      4.75 %      2027        649       649  
Sustainability-linked senior notes EUR 1,100 million (1)
      3.75 %      2027        1,255       1,292  
Senior notes USD 1,250 million
      6.75 %      2028        1,250       1,250  
Senior notes EUR 750 million
      1.63 %      2028        856       880  
Sustainability-linked senior notes USD 1,000 million (
1
)
      5.13 %      2029        1,000       1,000  
Sustainability-linked senior notes USD 600 million (
1
)
      7.88 %      2029        398       398  
Sustainability-linked senior notes EUR 800 million (
1
)
      7.38 %      2029        758       779  
Sustainability-linked senior notes EUR 1,500 million (
1
)
      4.38 %      2030        1,714       1,762  
Senior notes USD 700 million
      5.75 %      2030        696       696  
Sustainability-linked senior notes USD 500 million (
1
)
      8.13 %      2031        500       500  
Sustainability-linked senior notes EUR 500 million (
1
)
      7.88 %      2031        572       587  
Senior notes EUR 1,000 million
      4.13 %      2031        1,138       1,168  
Senior notes USD 500 million
      6.00 %      2032        496       496  
Senior notes USD 789 million
      6.15 %      2036        784       784  
Senior notes USD 2,000 million
      4.10 %      2046        1,988       1,988  
       
 
 
    
 
 
  
Total senior notes
 
      16,650       16,850  
Less current maturities
 
      (4,500 )      (1,798 ) 
Less debt issuance costs
 
      (58 )      (66 ) 
       
 
 
    
 
 
  
Total senior notes and loans
 
    $ 12,092     $ 14,986  
       
 
 
    
 
 
  
 
(1)
The Company achieved all sustainability performance targets applicable to its sustainability-linked senior notes by the respective target dates. Therefore, no
one-time
premium or increased interest rate payments will become payable in respect of these 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, if any. The long-term debt outlined in the above table is generally redeemable at any time at varying redemption prices plus accrued and unpaid interest.
As of June 30, 2026,
57
% of Teva’s debt was denominated in U.S. dollars, with the remainder denominated in euros. 
Teva’s principal sources of short-term liquidity are its cash on hand, existing cash investments, liquid securities and available credit facilities, primarily its $1.8 billion unsecured syndicated sustainability-linked revolving credit facility entered into in April 2022, as most recently amended in December 2025 (“RCF”).
In April 2024, one of the two extension options of the RCF was exercised, and the RCF maturity date was extended from its initial maturity date of April 2026 to April 2027.
 
On December 10, 2025, the terms of the RCF were amended to extend the April 2027 maturity to April 2028, using the second extension option, and to update the Company’s maximum permitted leverage ratio under the RCF for certain periods. Under the terms of the RCF, as amended, the Company’s leverage ratio shall not exceed 
4.25x. The RCF contains certain covenants, including certain limitations on incurring liens and indebtedness and maintenance of certain financial ratios. The RCF permits the Company to increase the maximum leverage ratio if it consummates or commences certain material transactions.
Pursuant to the terms of the RCF, as amended, the applicable margin used to calculate the interest rate under the RCF is linked to one sustainability performance target, the number of new regulatory submissions in low and middle-income countries. Proceeds from borrowings under the RCF can be used for general corporate purposes, including repaying existing debt. As of June 30, 2026, and as of the date of this Quarterly Report on Form
10-Q,
no amounts were outstanding under the RCF. Based on current and forecasted results, the Company expects that it will not exceed the financial covenant thresholds set forth in the RCF within one year from the date the financial statements are issued.
Under specified circumstances, including
non-compliance
with any of the covenants described above and the unavailability of any waiver, amendment or other modification thereto, the Company will not be able to borrow under the RCF. Additionally, violations of the covenants, under the circumstances referred to above, would result in an event of default in all borrowings under the RCF and, when greater than a specified threshold amount as set forth in each series of senior notes and sustainability-linked senior notes is outstanding, could lead to an event of default under the Company’s senior notes and sustainability-linked senior notes due to cross-acceleration provisions.
Teva expects that it will continue to have sufficient cash resources to support its debt service payments and all other financial obligations within one year from the date that the financial statements are issued.