Endo Selling $1 Billion of Secured Bonds to Help Refinance Loan


Endo International Plc is selling bonds to help refinance a term loan as it deals with ongoing opioid and patent litigation and an expected drop in earnings.

The drugmaker is issuing $1 billion of senior secured first-lien notes, according to a person with knowledge of the matter. The eight-year notes, which can’t be bought back for three years, may yield around 6.5%, said the person, who asked not to be identified as the details are private.

Along with a $2.295 billion loan that launched last week, the proceeds will help refinance Endo’s existing $3.3 billion term loan due 2024, according to a statement Thursday. Commitments on the new term loan are due Thursday in a sale managed by JPMorgan Chase & Co.

Dublin-based Endo has been cutting costs and reworking its balance sheet amid lawsuits tied to the U.S. opioid crisis and a generic drug business that has pressured earnings. It faces further uncertainty around patent litigation tied to its low-blood-pressure drug Vasostrict, which has a trial set for July.

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