11 Mar, 2021

Endo International prints upsized secured bonds to yield 6.125%; terms

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By Jakema Lewis

Endo International PLC has placed $1.295 billion (upsized from $1 billion) of eight-year secured first-lien notes at the tight end of talk, sources said. Joint bookrunners were J.P. Morgan, Citi, Barclays, BofA Securities, Deutsche Bank, Goldman Sachs, RBC Capital Markets and Siebert Williams.

Proceeds from the 144A-for-life notes will be used, along with proceeds from a $2 billion (downsized from $2.295 billion) new term loan B, to refinance the company's $3.3 billion term loan due 2024.

The company is a U.S.-based specialty healthcare solutions provider with an integrated business model across four segments: branded pharmaceuticals, sterile injectables, generic pharmaceuticals, and international pharmaceuticals. Terms:

Issuer Endo Luxembourg Finance Co. I S.a r.l. and Endo U.S. Inc.
Ratings B+/B2
Amount $1.295 billion
Issue Senior secured first-lien notes (144A/Reg S for life)
Coupon 6.125%
Price 100
Yield 6.125%
Spread T+479
Maturity April 1, 2029
Call Non-call five (first call at par plus 75% coupon)
Trade (date) March 11, 2021
Settle March 25, 2021 (T+10)
Joint bookrunners JPM/C/Barc/BofA/DB/GS/RBC/Seibert
Price talk 6.25% area; 6.5% area initial price thoughts
Notes Upsized from $1 billion; make-whole at T+50; up-to-40% equity claw at 106.125% until April 15, 2024; change of control at 101