Endo lifts term loan B to $1.5 billion, flexes to SOFR plus 450 bps

By Sara Rosenberg

New York, April 11 – Endo Inc. upsized its seven-year term loan B to $1.5 billion from $1.25 billion and reduced pricing to SOFR plus 450 basis points from talk in the range of SOFR plus 475 bps to 500 bps, according to a market source.

Also, the original issue discount on the term loan was changed to 99 from talk in the range of 98 to 98.5, the source said.

The term loan still has a 25 bps step-down at 0.5x inside closing date first-lien net leverage, a 0.5% floor, 101 soft call protection for six months and amortization of 1% per annum.

The company’s now $1.9 billion of credit facilities (B2/B+), up from $1.65 billion, also include a $400 million super-priority revolver.

Goldman Sachs Bank USA, JPMorgan Chase Bank, Barclays, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Santander, TCBI and BofA Securities Inc. are the arrangers on the deal.

Recommitments were scheduled to be due at 10:30 a.m. ET on Thursday, the source added.

Proceeds will be used with $1 billion of senior secured notes, downsized from $1.25 billion with the term loan upsizing, to fund the company’s exit from Chapter 11.

The company hopes to emerge from bankruptcy as early as late April.

Endo is a Dublin-based diversified specialty pharmaceutical company that filed bankruptcy on Aug. 16, 2022. The Chapter 11 case number is 22-22549.

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