Chadds Ford, Pa.-based specialty pharmaceutical company Endo Pharmaceuticals Holdings Inc. has acquired American Medical Systems Inc. (AMS) for approximately $2.9 billion. Endo used proceeds from a $2.7 billion senior secured credit facility and $900 million of senior unsecured notes to fund the acquisition, refinance Endo's existing secured debt, and pay transaction fees. We are assigning a 'BBB-' issue-level rating to the company's $2.7 billion senior secured credit facility and a 'BB-' issue-level rating to the $900 million of senior unsecured notes. We are also affirming our 'BB' corporate credit rating and the 'BB-' issue-level rating on the existing $400 million of senior unsecured notes. The stable outlook reflects its significantly increased free operating cash flow with the acquisition of AMS....
Companies mentioned in this report are:
- Endo Health Solutions Inc.
- American Medical Systems Inc.
Action: New Rating
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