Amneal Pharmaceuticals downsizes ABL revolver and term loan B

By Sara Rosenberg

New York, Oct. 22 - Amneal Pharmaceuticals LLC reduced the size of its five-year ABL revolver to $60 million from $90 million and its six-year term loan B (B2/B) to $415 million from $475 million, according to a market source.

In addition, the incremental allowance under the ABL facility was reduced to the lessor of $30 million from the lessor of $60 million, or ABL up to 1 times EBITDA.

The incremental allowance under the term loan B was revised to $55 million plus unlimited up to 3.75 times net senior leverage from $90 million plus unlimited up to 4.5 times net senior leverage, the source continued.

Price talk on the revolver is still Libor plus 250 basis points with no Libor floor, and the term loan B is still talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

GE Capital Markets and RBS Securities Inc. are the lead banks on the now $475 million senior secured credit facility, down from $565 million.

Proceeds will be used to refinance existing debt and fund a dividend.

Senior leverage is 3.8 times, down from 4.4 times under the original structure, and total leverage is 4 times, down from 4.7 times. Leverage is now based on LTM Sept. 30 EBITDA of $110.8 million, instead of LTM Aug. 31 EBITDA of $108.4 million.

Amneal Pharmaceuticals is a Bridgewater, N.J.-based manufacturer of generic pharmaceuticals.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.