By Paul A. Harris
Portland, Ore., Jan. 20 – Endo Ltd. priced an upsized $1.2 billion issue of 10-year senior notes (B1/B+/) at par to yield 6% on Tuesday, according to a syndicate source.
The deal was upsized from $1 billion.
The yield printed 12.5 basis points beneath the tight end of yield talk in the 6¼% area.
Joint physical bookrunner RBC Capital Markets Corp. will bill and deliver. Citigroup Global Markets Inc. was also a joint physical bookrunner. Goldman Sachs & Co. was a joint bookrunner.
Proceeds will be used to fund the acquisition of Auxilium Pharmaceuticals Inc. and refinance Auxilium debt. If the acquisition is not consummated prior to July 8, 2015, the issuer will redeem the notes at par plus accrued interest.
Endo is Dublin-based specialty health care company which has U.S. headquarters in Malvern, Pa.
Auxilium is a Chesterbrook, Pa.-based specialty biopharmaceutical company.
| Issuers: | Endo Ltd., Endo Finance LLC and Endo Finco Inc.
|
| Amount: | $1.2 billion, increased from $1 billion
|
| Maturity: | Feb. 1, 2025
|
| Securities: | Senior notes
|
| Physical bookrunners: | RBC Capital Markets (bill and deliver), Citigroup Global Markets Inc.
|
| Joint bookrunner: | Goldman Sachs & Co.
|
| Co-managers: | Barclays, Credit Suisse Securities (USA) LLC, Fifth Third Securities, SMBC Nikko, TD Securities, Wells Fargo Securities LLC
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Spread: | 421 bps
|
| First call: | Feb. 1, 2020 at 103
|
| Equity clawback: | 35% at 106 until Feb. 1, 2018
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 20
|
| Settlement date: | Jan. 27
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 6¼% area
|
| Marketing: | Quick to market
|
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