Moody’s cuts Endo debt; rates loan Ba1, notes B1

Moody's Investors Service said it confirmed the ratings of Endo Luxembourg Finance I Co. Sarl including the corporate family rating and probability of default rating at Ba3 and Ba3-PD, respectively.

The rating on the existing senior secured debt was downgraded to Ba1 and the rating on the existing senior unsecured debt was confirmed at B1.

Moody's also affirmed the SGL-2 speculative grade liquidity rating.

The outlook is negative. This resolves the review initiated on May 18 following the announcement that Endo would acquire Par Pharmaceutical Holdings, Inc. for $8.05 billion in cash and equity.

Moody's also assigned a Ba1 to the proposed senior secured term loan B that will be used, in part, to fund the acquisition of Par, and a B1 to the senior unsecured notes that Endo will issue to acquire Par.

The downgrade of the senior secured debt reflects the higher proportion of secured debt in the capital structure following the acquisition of Par, the agency said.

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