New Issue: Endo sells downsized $1 billion 8½% seven-year secured notes at par

By Paul A. Harris

Portland, Ore., April 11 – Endo Finance Holdings, Inc. priced a downsized $1 billion issue of seven-year senior secured notes (B2/B+) at par to yield 8½% on Thursday, according to market sources.

The issue size decreased from $1.25 billion.

The yield printed at the tight end of the 8½% to 8¾% yield talk.

JPMorgan was the lead.

The heavily oversubscribed issue was trading 101 3/8 bid, 101¾ bid offered, late Thursday afternoon after trading as high as 101 7/8 earlier in the afternoon, a trader said.

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.

Endo Finance is a wholly owned subsidiary of Endo, Inc., which guarantees the notes.

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.

Issuer:	Endo Finance Holdings, Inc.
Guarantor:	Endo, Inc.
Amount:	$1 billion, decreased from $1.25 billion
Issue:	Senior secured notes
Tenor:	Seven years
Lead:	JPMorgan
Coupon:	8½%
Price:	Par
Yield:	8½%
Call protection:	Three years
Trade date:	April 11
Settlement date:	April 23
Ratings:	Moody’s: B2
	S&P: B+
Distribution:	Rule 144A and Regulation S
Price talk:	8½% to 8¾%
Marketing:	Roadshow

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