Amneal lifts spread on $2.54 billion term loan to SOFR plus 550 bps

By Sara Rosenberg

New York, Nov. 2 – Amneal Pharmaceuticals increased pricing on its up to $2.544 billion amended and term loan B due 2028 (B2/B) to SOFR plus 550 basis points from SOFR plus 525 bps, according to a market source.

Also, the original issue discount on the term loan was revised to 95 from 96, and the call protection was changed to a hard call of 103 in year one, 102 in year two and 101 in year three, from a 102 hard call in year one and a 101 soft call in year two.

In addition, amortization on the term loan was lifted to 2.5% per annum, documentation modifications were made, and the collateral package was revised, the source continued.

The term loan still has a 0.5% floor.

JPMorgan Chase Bank is the lead on the deal.

Recommitments are due at 11 a.m. ET on Friday, the source added.

Proceeds will be used to amend and extend all or a portion of an existing $2.544 billion term loan due May 2025 that is priced at SOFR+CSA plus 350 bps. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Amneal is a Bridgewater, N.J.-based generic pharmaceutical manufacturer.

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