Published on 6/3/2011 in the Prospect News High Yield Daily.
New Issue: Endo Pharmaceuticals prices upsized $900 million two-part senior notes
By Paul A. Harris
Portland, Ore., June 3 - Endo Pharmaceuticals Holdings Inc. priced an upsized, restructured $900 million two-part senior notes transaction (Ba3/BB-/) on Friday, according to informed sources.
The Chadds Ford, Pa.-based specialty health care company priced a $500 million tranche of eight-year notes at par to yield 7%.
The eight-year notes priced at the wide end of price talk which had been set in the 6 7/8% area. Call protection for the eight-year notes was extended to four years from three years.
Endo also priced a $400 million tranche of 10.5-year notes at par to yield 7¼%. The 10.5-year notes also priced at the wide end of price talk which had been set in the 7 1/8% area. The maturity was decreased to 10.5 years from 12 years.
The total size was increased from $700 million.
Bank of America Merrill Lynch, Morgan Stanley & Co., Inc., Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. were the joint bookrunners.
Proceeds, along with cash on hand and funds from a new $2.9 billion credit facility, will be used to finance Endo's acquisition of American Medical Systems and to refinance American Medical Systems debt and Endo's existing credit facility.
Issuer: | Endo Pharmaceuticals Holdings Inc.
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Amount: | $900 million (increased from $700 million)
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Securities: | Senior notes
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Bookrunners: | Bank of America Merrill Lynch, Morgan Stanley & Co., Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc.
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Co-managers: | Barclays Capital Inc., Credit Suisse Securities (USC) LLC, Lazard Capital Markets, RBC Capital Markets
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Change of control put: | 101%
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Trade date: | June 3
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Settlement date: | June 8
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Ratings: | Moody's: Ba3
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| Standard & Poor's: BB-
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Distribution: | Rule 144A with registration rights and Regulation S
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Marketing: | Roadshow
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Eight-year notes
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Amount: | $500 million
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Maturity: | July 15, 2019
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Coupon: | 7%
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Price: | Par
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Yield: | 7%
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Spread: | 450 bps
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Call features: | Make-whole call at Treasuries plus 50 bps until July 15, 2015, then callable at 103.5, 101.75, par on and after July 15, 2017
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Equity clawback: | 35% at 107 until July 15, 2014
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Price talk: | 6 7/8% area
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Ten and a half-year notes
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Amount: | $400 million
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Maturity: | Jan. 15, 2022
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Coupon: | 7¼%
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Price: | Par
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Yield: | 7¼%
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Spread: | 425 bps
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Call features: | Make-whole call at Treasuries plus 50 bps until July 15, 2016, then callable at 103.625, 102.417, 101.208, par on July 15, 2019
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Equity clawback: | 35% at 107.25 until July 15, 2014
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Price talk: | 7 1/8% area
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