RLPC: Endo markets $4.3B refinancing package

Tue Nov 26, 2013 5:19pm EST
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By Natalie Wright

NEW YORK Nov 26 (Reuters) - Malvern, Pennsylvania-based healthcare company Endo Health Solutions is marketing a $4.3 billion bond and loan refinancing package in conjunction with its $1.6 billion acquisition of Paladin Labs Inc, sources told Thomson Reuters LPC.

The acquisition triggers change of control requirements on Endo's existing debt, prompting the refinancing.

The loan portion comprises a $750 million institutional tranche, which is expected to launch at a December 4 bank meeting, along with a $1.85 billion pro rata portion that launched November 22.

The pro rata portion is typically syndicated to banks, while the institutional term loan is marketed to institutional investors.

The $1.85 billion pro rata piece is split between a $750 million, five-year revolver and a $1.1 billion, five-year term loan A. Price guidance on the revolver and term loan A is set at LIB+200, with no Libor floor. The revolver, which is expected to be undrawn at close, will carry a 35bp fee on the undrawn portion.

Lender commitments are due December 12, sources added.

The $1.68 billion bond portion of the financing is comprised of $500 million 7 percent notes due 2019; $400 million 7 percent notes due 2020; $400 million 7.25 percent notes due 2022; and $380 million 1.75 percent convertible notes due 2015.

The refinancing package will also be used to buy back Endo's outstanding convertible notes due April 2015.   Continued...