Amneal seeks to borrow $1.8 billion in new term loans, offers notes

Published 21/07/2025, 12:48
Amneal seeks to borrow $1.8 billion in new term loans, offers notes

BRIDGEWATER, N.J. - Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX), currently valued at $2.5 billion and rated "GREAT" for financial health according to InvestingPro analysis, announced Monday that its subsidiary, Amneal Pharmaceuticals LLC, is seeking to borrow $1.8 billion in new seven-year term B loans and has launched an offering of $750 million in senior secured notes due 2032.

The company intends to use the proceeds to refinance its existing term B loans in full, repay a portion of outstanding amounts borrowed under its ABL facility, and cover related fees and expenses. With a current ratio of 1.4 and strong free cash flow yield, the company appears well-positioned to manage its debt obligations.

The notes will initially be guaranteed on a senior secured basis by the same subsidiaries that will guarantee the Term Loan Facility, but will not be guaranteed by Amneal Pharmaceuticals, Inc. They will be secured by the same assets as the Term Loan Facility, with first-priority liens on collateral except for ABL priority collateral, on which they will have second-priority liens.

The notes offering is not conditioned on entry into the Term Loan Facility. The notes will be offered only to qualified institutional buyers under Rule 144A of the Securities Act and to non-U.S. persons under Regulation S.

Amneal noted that the proposed transactions are subject to market conditions and other factors, with no assurance as to whether or when they may be completed.

Amneal Pharmaceuticals is a biopharmaceutical company that develops, manufactures, and distributes over 280 pharmaceuticals. Its business spans three segments: Affordable Medicines, which includes complex products such as injectables and biosimilars; Specialty, focused on central nervous system and endocrine disorders; and AvKARE, which distributes pharmaceuticals for the U.S. federal government and other markets. The company has demonstrated robust growth with revenue reaching $2.83 billion and impressive year-over-year growth of ~13%. According to InvestingPro, which provides comprehensive analysis and Fair Value estimates for over 1,400 US stocks, Amneal is currently trading below its Fair Value, suggesting potential upside opportunity.

This information is based on a company press release statement.

In other recent news, Amneal Pharmaceuticals reported its first-quarter 2025 earnings, surpassing analysts’ expectations with an adjusted EPS of $0.21 compared to the forecasted $0.15. However, the company’s revenue of $695 million fell short of the anticipated $726.49 million, despite a 5% year-over-year growth. The U.S. Food and Drug Administration (FDA) approved Amneal’s Brekiya autoinjector for migraines, marking it as the first DHE autoinjector for this condition, with availability expected in the second half of 2025. Additionally, the FDA approved Amneal’s prednisolone acetate eye drops, with a commercial launch planned for the third quarter of 2025. Amneal also announced positive Phase 3 results for its XOLAIR biosimilar, developed by Kashiv BioSciences, and plans to submit a Biologics License Application to the FDA in late 2025. In analyst coverage, Goldman Sachs initiated coverage on Amneal with a Neutral rating, citing the company’s strong product pipeline as a growth driver. The firm expects Amneal’s generics segment to exceed consensus estimates by 13% in fiscal year 2027, driven by biosimilar and sterile injectable launches.

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