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Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX), a pharmaceutical company with annual revenue of $2.83 billion and EBITDA of $605 million, announced Thursday that its subsidiary, Amneal Pharmaceuticals LLC, has priced a private offering of $600 million in aggregate principal amount of 6.875% senior secured notes due 2032. The notes will be sold to investors at 100% of their principal amount. According to InvestingPro analysis, the company currently shows signs of slight undervaluation and maintains a strong free cash flow yield.
The company stated that the offering was downsized from a previously announced $750 million, following a $300 million increase in its term loan facility. Amneal expects to borrow $2.1 billion in new seven-year term B loans under the updated term loan facility, up from an earlier planned $1.8 billion. With a current market capitalization of $2.51 billion and a total debt-to-capital ratio of 0.5, this refinancing represents a significant financial restructuring for the company.
According to the company, proceeds from the new term B loans and the note offering are intended to refinance existing term B loans in full, repay outstanding amounts under its asset-based lending (ABL) facility, and cover related fees, premiums, and expenses. For detailed analysis of Amneal’s debt structure and comprehensive financial metrics, investors can access the full company research report on InvestingPro, which offers expert insights on over 1,400 US stocks.
The offering of the notes is not contingent on the completion of the new term loan facility. The closing of the notes offering is expected on August 1, subject to customary closing conditions.
Amneal noted that the notes will not be registered under the Securities Act of 1933 or the securities laws of any other jurisdiction. They will be offered only to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S.
This information is based on a press release statement contained in a filing with the Securities and Exchange Commission.
In other recent news, Amneal Pharmaceuticals reported preliminary second-quarter revenue of $720-730 million, marking a 3% increase from the same period last year. The company also announced a significant rise in income before taxes, ranging from $45 million to $56 million, compared to $20 million in the previous year. Adjusted EBITDA grew by approximately 13% to between $180 million and $185 million. Additionally, Amneal is seeking to borrow $1.8 billion in new term loans and has launched an offering of $750 million in senior secured notes due 2032 to refinance existing loans and repay part of its ABL facility. The company also shared positive phase 3 trial results for its XOLAIR biosimilar, developed with Kashiv BioSciences, which showed promising efficacy and safety. The FDA has approved Amneal’s prednisolone acetate eye drops, with a commercial launch planned for the third quarter of 2025. Goldman Sachs initiated coverage of Amneal with a Neutral rating, citing the company’s strong product pipeline and strategic focus on biosimilars and sterile injectables as growth drivers. These developments reflect Amneal’s ongoing efforts to strengthen its financial position and expand its product offerings.
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