Amneal widens $2.7 billion term loan B pricing to Libor plus 350 bps

By Sara Rosenberg

New York, March 23 – Amneal Pharmaceuticals Inc. increased pricing on its $2.7 billion seven-year term loan B (B1/BB-) to Libor plus 350 basis points from talk in the range of Libor plus 300 bps to 325 bps and added a step-down to Libor plus 325 bps when net first-lien leverage is 3 times, according to a market source.

Furthermore, the 101 soft call protection on the term loan was extended to one year from six months and the MFN was changed to 50 bps for life from 75 bps with a sunset of six months, the source said.

The term loan still has a 0% Libor floor and an original issue discount of 99.5.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and RBC Capital Markets are the leads on the deal.

Recommitments were scheduled to be due at 2 p.m. ET on Friday, the source added.

Proceeds will be used to refinance currently outstanding debt at Amneal Pharmaceuticals LLC and Impax Laboratories Inc. in connection with the acquisition of Impax.

Under the agreement, a new, publicly traded holding company, Amneal Pharmaceuticals Inc., will be formed and will purchase Impax in an all-stock transaction.

Amneal members will own about 75% and Impax shareholders will own around 25% of the new company’s pro forma shares on an as converted basis.

Closing is expected in the first half of this year, subject to customary conditions, including receipt of regulatory approvals and Impax shareholder approval.

Amneal is a Bridgewater, N.J.-based generic pharmaceutical manufacturer. Impax is a Hayward, Calif.-based specialty pharmaceutical company.

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