Amneal Pharmaceuticals announces proposed refinancing of credit agreement

Amneal Pharmaceuticals (AMRX) announced that its subsidiary, Amneal Pharmaceuticals is seeking to borrow $1.8B aggregate principal amount of new seven-year term B loans under a new term loan facility. The Issuer has also launched an offering of $750M aggregate principal amount of senior secured notes due 2032 in a private offering. The Issuer intends to use the net proceeds of the new term B loans and the notes to refinance its existing term B loans in full, to repay a portion of outstanding amounts borrowed under its ABL facility and to pay related fees, premiums and expenses. The offering of the notes is not conditioned on entry into the Term Loan Facility. The notes will initially be guaranteed on a senior secured basis by the same subsidiaries of the Issuer that will guarantee the Term Loan Facility, and will not be guaranteed by Amneal. The notes will be secured on a pari passu basis by the same assets that will secure the Term Loan Facility, and will have the benefit of a first-priority lien on the collateral and a second-priority lien on the ABL priority collateral. The Issuer’s obligations under its existing asset-based credit facility are secured on a first priority basis on the ABL priority collateral and a second priority basis on the collateral on which the notes and the new term B loans will have a first priority lien.