Endo cuts seven-year secured notes offering to $1 billion, sets talk at 8½%-8¾%; pricing Thursday

By Paul A. Harris

Portland, Ore., April 11 – Endo Finance Holdings, Inc. downsized its offering of seven-year senior secured notes to $1 billion from $1.25 billion and talked the deal to yield 8½% to 8¾%, according to market sources.

Despite the downsizing, which saw $250 million of proceeds shifted to a bank loan, the bond deal is heavily oversubscribed, according to a trader, who added that demand for the bonds was heard to be $7.2 billion on Thursday morning.

The deal is expected to price later Thursday.

The Rule 144A and Regulation S notes come with three years of call protection.

J.P. Morgan Securities LLC is leading the notes’ sale.

The $250 million downsize amount, which was shifted to the concurrent term loan B, increased the loan size to $1.5 billion from $1.25 billion.

The Dublin-based specialty pharmaceutical company plans to use a portion of the proceeds plus a rights offering under its Chapter 11 reorganization plan and cash on hand to acquire substantially all of the assets of Endo International plc (EIP) and certain affiliates.

EIP will use the sale proceeds to settle payments under the plan, as well as to make cash distributions to the first-lien claimholders and for general corporate purposes.

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