By Paul A. Harris
Portland, Ore., Dec. 11 - Endo Finance Co. (Endo Health Solutions Inc.) priced a massively upsized $700 million issue of eight-year senior notes (B1/B) at par to yield 5¾% on Wednesday, according to a syndicate source.
The deal was upsized from $375 million.
The yield printed at the tight end of yield talk in the 5 7/8% area.
RBC Capital Markets LLC, Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC were the joint bookrunners.
If the acquisition of Paladin Labs Inc. is consummated, proceeds will be used to refinance Endo's credit facilities and to fund general corporate purposes. If the Paladin acquisition is not consummated, proceeds will be used to fund general corporate purposes. The proceeds will be escrowed until May 5, 2014, pending the acquisition, then will be released for general corporate purposes.
Additional proceeds, from the $325 million upsizing of the deal, will be used to put cash on the balance sheet.
Endo is a Malvern, Pa.-based specialty health-care company.
| Issuer: | Endo Finance Co.
|
| Amount: | $700 million, increased from $375 million
|
| Maturity: | Jan. 15, 2022
|
| Securities: | Senior notes
|
| Bookrunners: | RBC Capital Markets LLC, Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Spread: | 330 bps
|
| First call: | Jan. 15, 2017 at 104.313
|
| Equity clawback: | 35% at 105.75 until Jan. 15, 2017
|
| Investor put: | 101% upon change of control
|
| Trade date: | Dec. 11
|
| Settlement date: | Dec. 19
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5 7/8% area
|
| Marketing: | Quick to market
|
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