By Paul A. Harris
Portland, Ore., June 24 – Endo International plc priced an upsized $1,635,000,000 issue of eight-year senior notes (B1/B) at par to yield 6% on Wednesday, according to an informed source.
The deal was increased by $200 million from $1,435,000,000.
The yield printed at the tight end of the 6% to 6¼% yield talk.
Initial guidance had the notes coming with a yield in the low-to-mid 6% context, according to a trader.
Joint bookrunner Barclays will bill and deliver. Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc. were also joint bookrunners.
Proceeds, together with funds from new senior secured credit facilities and cash on hand, will be used to finance the acquisition of Woodcliff, N.J.-based Par Pharmaceutical Holdings, Inc., as well as for the repayment of Par’s debt, with any remaining proceeds to be used for general corporate purposes, including acquisitions and debt repayment.
If the acquisition is not consummated prior to Feb 12, 2016 the issuers will redeem the notes at par plus accrued interest.
Endo also upsized its concurrent term loan B by $300 million to $2.8 billion.
The additional proceeds resulting from the upsizings of the note offer and term loan will be used to redeem the company’s 7% senior notes due 2019.
The Dublin, Ireland-based pharmaceutical company issued the notes via its wholly owned subsidiaries, Endo Ltd., Endo Finance LLC and Endo Finco Inc.
| Issuer: | Endo Ltd., Endo Finance LLC, Endo Finco Inc.
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| Amount: | $1,635,000,000, increased from $1,435,000,000
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| Maturity: | July 15, 2023
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| Securities: | Senior notes
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| Bookrunners: | Barclays (bill and deliver), Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc.
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| Co-managers: | BofA Merrill Lynch, DnB Markets, Morgan Stanley & Co. LLC, RBC Capital Markets, SMBC Nikko
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| Coupon: | 6%
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| Price: | Par
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| Yield: | 6%
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| Spread: | 372 bps
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| First call: | July 15, 2023 at 104.5
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| Special call: | $1,435,000,000 callable at par plus accrued interest if the acquisition is not consummated prior to Feb 12, 2016
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| Trade date: | June 24
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| Settlement date: | July 9
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| Ratings: | Moody’s: B1
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| Standard & Poor’s: B
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 6% to 6¼%
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| Marketing: | Roadshow
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