Impax Laboratories gets consents to amend 2% convertibles due 2022

By Angela McDaniels

Tacoma, Wash., Nov. 6 – Impax Laboratories, Inc. received enough consents to make amendments to its 2% convertible senior notes due June 15, 2022, according to a company news release.

A consent solicitation for the convertibles began Oct. 30 and ended at 5 p.m. ET on Nov. 6.

The consents allow the company to amend the indenture governing the notes to

• Amend a covenant to permit the conversion of the company into a limited liability company or other organizational form;

• Allow the company to satisfy its reporting requirements to holders of the convertibles by providing reports of any parent entity;

• Add a provision requiring Impax to consummate a tender offer for the convertibles at par plus accrued interest after the closing of the company’s proposed combination with Amneal Pharmaceuticals LLC; and

• Add a provision to the indenture expressly allowing the combination.

Impax said it began the consent solicitation at Amneal’s request.

Because the consent bid was successful – it garnered approval from the holders of 98.6% of the outstanding notes – Impax will pay a total consent payment of $3.75 million, which will be shared among consenting holders.

The consent payment per $1,000 principal amount is $6.34, which is equal to $6.25 times a fraction of the outstanding principal amount and the principal amount for which consents have been received. The payment could have ranged from $6.25 to $12.50.

The company expects to pay the consent payment no later than the third business day after the closing of the combination.

Receipt of the requisite consents was not required for the Amneal transaction.

Amneal has obtained a financing commitment for the refinancing of certain debt of Amneal and Impax, including the convertibles.

The solicitation agent was RBC Capital Markets, LLC (877 381-2099 or 212 681-7843). The information and tabulation agent was Global Bondholders Services Corp. (866 794-2200 or 212 430-3774).

Impax is a specialty pharmaceutical company based in Hayward, Calif. Amneal is a Bridgewater, N.J.-based generic pharmaceutical manufacturer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.