Endo/Par Pharmaceutical to sell $1 billion eight-year notes Thursday

By Paul A. Harris

Portland, Ore., March 14 – Par Pharmaceutical Cos., Inc. plans to price a $1 billion offering of eight-year senior secured notes (expected ratings Ba2/BB-) in a Thursday drive-by, market sources say.

Initial talk has the deal coming to yield in the 7½% area, according to a bond trader.

J.P. Morgan Securities LLC is leading the Rule 144A and Regulation S offering.

The notes come with three years of call protection.

Par Pharmaceutical is a wholly owned subsidiary of Endo Pharmaceuticals plc, a generics and specialty branded pharmaceutical company, which maintains international headquarters in Dublin, Ireland, and U.S. headquarters in Malvern, Pa.

The notes will be senior secured obligations of Par Pharmaceutical and will be guaranteed by Endo and certain of Endo's subsidiaries and secured by first priority liens on the same collateral that secures Endo's existing senior secured credit facilities and its existing senior secured notes.

Proceeds from the notes sale, together with cash on hand, will be used to fund tender offers by Endo Finance LLC, a wholly owned subsidiary of Endo, to purchase a portion of Endo’s outstanding senior notes. Remaining proceeds, if any, will be used to further reduce debt.

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