Moody’s might lift Auxilium

Moody's Investors Serviced said it placed the ratings of Auxilium Pharmaceuticals, Inc. under review for upgrade, including the B3 corporate family rating, B3-PD probability of default rating and Ba3 senior secured rating.

This action follows the announcement that Endo International plc made an offer to acquire Auxilium for about $2.2 billion including debt refinancing.

The speculative grade liquidity rating was affirmed at SGL-4.

Auxilium's board is evaluating Endo's offer, which, if accepted, will be subject to due diligence and other customary closing conditions.

Moody's said the review will consider the final terms of any deal accepted by Auxilium. If an acquisition by Endo occurs, Auxilium's credit profile will benefit from becoming part of a larger, more diversified company with lower financial leverage. The agency anticipates that Auxilium's debt will be repaid under this scenario.

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