S&P rates Endo notes BB

S&P said it assigned a BB rating to Endo International plc's proposed $300 million senior secured notes due 2024.

The notes are issued by Endo Designated Activity Co., Endo Finance LLC and Endo Finco Inc.

The recovery rating is 1, indicating 90% to 100% expected default recovery.

The proceeds from this transaction – together with its recently announced senior secured term loan B facility – will be used to repay the company's existing term loan A due 2019, existing term loan B due 2022 and for general corporate purposes.

The agency said it expects the transaction to be leverage-neutral.

The B+ corporate credit rating and negative outlook on Endo International continue to reflect expectations for limited de-leveraging in the near term as a result of weakening of its generic franchise, competitive pressures in its branded business and potential increased litigation costs, S&P said.

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