Amneal lowers spread on $250 million add-on loan to Libor plus 400 bps

By Sara Rosenberg

New York, Dec. 17 – Amneal Pharmaceuticals LLC reduced pricing on its fungible $250 million add-on first-lien covenant-light term loan (B1/B+) due Nov. 2, 2019 to Libor plus 400 basis points from Libor plus 425 bps, according to a market source.

In addition, the original issue discount on the add-on loan was tightened to 99½ from 99, the source said.

The add-on term loan still has a 1% Libor floor and 101 soft call protection for six months.

GE Capital Markets, J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are the joint lead arrangers on the deal.

With the add-on, the company is increasing pricing on its existing $490 million first-lien covenant-light term loan to Libor plus 400 bps with a 1% Libor floor from Libor plus 375 bps with a 1% Libor floor, and the existing loan is getting the 101 soft call protection for six months as well.

Proceeds from the add-on will be used to fund a dividend.

Closing is scheduled for Thursday, the source added.

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

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