Amneal Pharmaceuticals lifts term B pricing to Libor plus 475 bps

By Sara Rosenberg

New York, Oct. 28 - Amneal Pharmaceuticals LLC increased pricing on its $415 million six-year term loan B (B2/B) to Libor plus 475 basis points from talk of Libor plus 400 bps to 425 bps, according to a market source.

As before, the B loan has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Recommitments are due on Tuesday, and allocations are expected to go out on Thursday, the sources added.

The company's $475 million senior secured credit facility also provides for a $60 million five-year ABL revolver.

Earlier in syndication, the size of the term loan B was reduced from $475 million and the size of the ABL revolver was trimmed from $90 million, 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, and 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.

GE Capital Markets and RBS Securities Inc. are the lead banks on the deal.

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

Senior leverage is 3.8 times and total leverage is 4 times.

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

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