Endo opts not to make $38 million coupon payment on 6% notes due 2028

By Marisa Wong

Los Angeles, June 30 – Endo International plc has elected not to make an interest payment of about $38 million due on June 30 with respect to its outstanding 6% senior notes due 2028, according to an 8-K filing with the Securities and Exchange Commission.

Under the indenture governing the notes, the company has a 30-day grace period to make the interest payment before the non-payment constitutes an event of default.

The company chose to enter the grace period as it continues discussions with some creditors in connection with its evaluation of strategic alternatives.

However, the company’s decision to enter the grace period was not driven by liquidity constraints, as it had roughly $1.4 billion in cash as of March 31. Accordingly, the company’s day-to-day operations will not be impacted by the decision.

Endo is a Dublin, Ireland-based specialty pharmaceutical company.

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