Amneal Pharmaceuticals, Inc.AMRX
Amneal Pharmaceuticals, Inc. Debt Disclosure
Debt
The following is a summary of the Company’s term loan indebtedness (in thousands):
| December 31, 2025 | December 31, 2024 | ||||||||||
| Term Loan Due 2032 | $ | 2,094,750 | $ | — | |||||||
| Senior Notes Due 2032 | 600,000 | — | |||||||||
| Term Loan Due 2025 | — | 191,979 | |||||||||
| Term Loan Due 2028 | — | 2,292,856 | |||||||||
| Total debt | 2,694,750 | 2,484,835 | |||||||||
| Less: debt issuance costs | (122,874) | (98,832) | |||||||||
| Total debt, net of debt issuance costs | 2,571,876 | 2,386,003 | |||||||||
| Less: current portion of long-term debt | (6,761) | (224,213) | |||||||||
| Total long-term debt, net | $ | 2,565,115 | $ | 2,161,790 | |||||||
Overview of Amneal Credit Facilities
On May 4, 2018 the Company entered into a Term Loan Credit Agreement (the “Term Loan Credit Agreement”) that provided a term loan (“Term Loan Due 2025”) with a principal amount of $2.7 billion and an asset backed revolving credit facility (“Revolving Credit Facility”) under which loans and letters of credit up to a principal amount of $500.0 million were available (principal amount of up to $25.0 million was available for letters of credit).
On June 2, 2022, the Company entered into a revolving credit agreement (the “New Revolving Credit Agreement”) that terminated the lender commitments under the Revolving Credit Facility, and replaced them with a new $350.0 million senior secured revolving credit facility that matures on June 2, 2027 (the “New Revolving Credit Facility”). In addition, the New Revolving Credit Agreement (i) provided for up to $25.0 million for the purpose of issuing letters of credit, (ii) provided for up to $35.0 million for the purpose of issuing swingline loans, and (iii) allowed the Company to request an incremental increase in the revolving facility commitments by up to $150.0 million.
On November 14, 2023, the Company amended the Term Loan Credit Agreement (the “New Term Loan Credit Agreement”), exchanging and refinancing $2.35 billion of outstanding Term Loan Due 2025 into new term loans (the “Term Loan Due 2028”) maturing May 4, 2028 (the “November 2023 Refinancing”), leaving $192.0 million in principal remaining under the Term Loan Due 2025.
In October 2019, the Company entered into an interest rate lock agreement for a total notional amount of $1.3 billion to hedge part of the Company’s interest rate exposure associated with the variability in future cash flows with its Term Loan Due 2025. In connection with the November 2023 Refinancing, the Company amended this interest rate agreement. For further details on this, refer to Note 18. Financial Instruments.
Additionally on November 14, 2023, the Company entered into an amendment to the New Revolving Credit Facility (the “2023 Revolving Credit Facility”), pursuant to which certain lenders agreed to increase their commitments such that the aggregate revolving commitments increased to up to $600.0 million.
In January 2025, the Company paid the entire remaining principal balance of $192.0 million then outstanding on its Term Loan Due 2025, plus accrued interest thereon of $0.7 million, with $190.0 million of new borrowings under the 2023 Revolving Credit Facility and cash on hand.
On August 1, 2025, the Company borrowed $2.1 billion under new seven-year term loans (the “Term Loan Due 2032”) pursuant to an amendment to the Term Loan Credit Agreement (the “Amended Term Loan Agreement”) and completed a private offering of $600 million aggregate principal amount of 6.875% senior secured notes due 2032 at par (the “Senior Notes Due 2032”). The Company also entered into an amendment to the 2023 Revolving Credit Facility (the “2025 Revolving Credit Facility”). The Company used the net proceeds of the Term Loan Due 2032 and the Senior Notes due 2032 to refinance the Term Loan Due 2028 in full, to repay outstanding amounts borrowed under the 2023 Revolving Credit Facility in full, and to pay related fees, premiums and expenses (this transaction is collectively referred to as the “August 2025 Refinancing”). Additionally, an amendment to the Term Loan Credit Agreement provided additional flexibility to the Company and its restricted subsidiaries, including without limitation, with respect to representations and warranties, affirmative and negative covenants and incremental and equivalent term loan facilities.
On August 28, 2025, the Company completed a transaction to terminate the November 2023 Swap (as defined in Note 18. Financial Instruments) and entered into a new agreement (the “August 2025 Swap”). For further details on this, refer to Note 18. Financial Instruments.
The Company refers to the Term Loan Due 2032, and related revolving and prior term loan arrangements (including amended facilities) collectively as the “Senior Secured Credit Facilities”. The proceeds of any loans made under the Senior Secured Credit Facilities can be used for capital expenditures, acquisitions, working capital needs and other general purposes, subject to covenants as described below.
Amneal Term Loans and Senior Notes
Term Loan Due 2025
The remaining balance of the Term Loan Due 2025 was repaid in full in January 2025 as described above.
Amortization of debt issuance costs related to the Term Loan Due 2025 was not material for the years ended December 31, 2025 and 2024. For the year ended December 31, 2023, amortization of debt issuance costs related to the Term Loan Due 2025 was $4.7 million.
Term Loan Due 2028
As of December 31, 2024, the Company had $2.3 billion outstanding under the Term Loan due 2028. As noted above, during the August 2025 Refinancing, the Company used the net proceeds of the Term Loan Due 2032 and the Senior Notes due 2032 to refinance the Term Loan Due 2028 in full.
For the years ended December 31, 2025, 2024, and 2023, amortization of debt issuance costs related to the Term Loan Due 2028 was $15.0 million, $24.3 million, and $2.9 million, respectively.
In connection with the November 2023 Refinancing, the Company recognized a loss of $40.8 million for the year ended December 31, 2023, which was primarily comprised of debt issuance costs associated with the portion of the Term Loan Due 2025 that was modified.
Term Loan Due 2032
The Term Loan Due 2032 has a maturity date of August 1, 2032. Quarterly principal payments are due in an amount equal to 1.00% per annum of the original principal amount thereof, commencing on the last business day of the fiscal quarter ending December 31, 2025, with the remaining balance due on August 1, 2032. Interest is payable on the Term Loan Due 2032 at a rate equal to the SOFR benchmark rate or the base rate, plus an applicable margin, in each case, subject to a term SOFR benchmark rate floor of 0.50% or a base rate floor of 1.00%, as applicable. The applicable margin for the Term Loan Due 2032 is 3.50% per annum for term SOFR benchmark rate loans and 2.50% per annum for base rate loans.
The August 2025 Refinancing involved multiple lenders that were considered members of a loan syndicate. In determining whether the refinancing of the Term Loan Due 2028 was to be accounted for as a debt extinguishment or a debt modification, the Company considered whether creditors remained the same or changed and whether the changes in debt terms were substantial, on a lender-by-lender basis, in accordance with the guidance in ASC 470, Debt (“ASC 470”). As a result of this analysis, the Company legally has separate loans from each lender in the syndicate of the Term Loan Due 2032, and each lender has a contractual right to payments from the Company. The Company concluded that, on a lender-by-lender basis, debt held by 99% of the lenders included in the refinancing was considered modified, with the remaining debt held by lenders considered to be extinguished. In accordance with ASC 470, the Company capitalized costs of $49.4 million associated with the Term Loan Due 2032, primarily comprised of lender fees, which were combined with $73.4 million of unamortized debt issuance costs associated with the Term Loan Due 2028. The resulting debt discount balance of $122.8 million will be amortized to interest expense over the life of the Term Loan Due 2032 using the effective interest method. In connection with the refinancing, the Company recognized a loss of $31.4 million for the year ended December 31, 2025, which was primarily comprised of debt issuance costs associated with the portion of the Term Loan Due 2028 that was modified. For the year ended December 31, 2025 amortization of debt issuance costs related to the Term Loan Due 2032 was $5.6 million.
On February 2, 2026, the Company entered into a repricing amendment to the Term Loan Credit Agreement governing the Term Loan Due 2032. Refer to Note 25. Subsequent Events for additional information.
Senior Notes Due 2032
The Senior Notes Due 2032 were issued at par pursuant to an indenture dated August 1, 2025. The Senior Notes Due 2032 mature on August 1, 2032 (no principal is due until maturity) and bear interest at a rate of 6.875% per year. Interest is payable on February 1 and August 1 of each year, beginning on February 1, 2026.
In accordance with ASC 470, the Company capitalized costs of $6.0 million associated with the issuance of the Senior Notes Due 2032, primarily comprised of lender fees. Capitalized costs will be amortized to interest expense over the life of the Senior Notes Due 2032 using the effective interest method. For the year ended December 31, 2025 amortization of debt issuance costs related to the Senior Notes Due 2032 was not material.
The Senior Notes Due 2032 and related guarantees represent senior secured obligations of the Company and the guarantors, respectively, ranking pari passu with existing and future senior indebtedness and senior to any future subordinated debt. The Senior Notes Due 2032 and the related guarantees are secured (x) on a first-priority basis by liens on fixed asset collateral, which consists of substantially all of the assets (other than asset‑based lending (“ABL”) priority collateral) that secure the
Company’s and the guarantors’ obligations under the Term Loan due 2032 on a pari passu basis, and (y) on a second-priority basis by liens on the collateral that secures the obligations under the 2025 Revolving Credit Facility on a first-priority basis, which generally includes the Company’s and the guarantors’ cash, inventory and accounts receivable and related assets.
The indenture governing the Senior Notes Due 2032 includes customary high-yield covenants that restrict the Company’s ability to incur additional indebtedness, pay dividends or make other restricted payments, create liens, engage in affiliate transactions, merge or consolidate, dispose of substantial assets, and imposes limitations on the ability of restricted subsidiaries to make payments to the Company.
Amneal Revolving Credit Facilities
Deferred financing costs associated with the 2025 Revolving Credit Facility, the 2023 Revolving Credit Facility, and New Revolving Credit Facility are recorded in other assets.
At the time of the November 2023 Refinancing, the Company had $1.6 million in unamortized deferred financing costs related to the New Revolving Credit Facility. As a result of the November 14, 2023 amendment, there was an increase in the borrowing capacity of all lenders between the 2023 Revolving Credit Facility and the New Revolving Credit Facility. The Company incurred costs of $2.4 million associated with this amendment, which were capitalized as deferred financing costs along with the remaining unamortized costs associated with the New Revolving Credit Facility, and were amortized over the life of the 2023 Revolving Credit Facility.
In connection with the August 2025 Refinancing, the 2025 Revolving Credit Facility extends the maturity of the 2023 Revolving Credit Facility from June 2, 2027 to August 1, 2030. The aggregate revolving commitments of the lenders under the 2025 Revolving Credit Facility continue to be $600.0 million.
The Company incurred $2.0 million in costs with the 2025 Revolving Credit Facility, which were capitalized and combined with the existing $2.0 million of unamortized deferred financing costs associated with the 2023 Revolving Credit Facility at the time of the refinancing. These costs will be amortized over the life of the 2025 Revolving Credit Facility. For the years ended December 31, 2025, 2024 and 2023, amortization of deferred financing costs were $1.0 million, $1.1 million, and $0.5 million, respectively.
As of December 31, 2025 the Company had $595.2 million of available capacity under the 2025 Revolving Credit Facility (principal amount of up to $20.2 million remained available for letters of credit). As discussed above, in January 2025, the Company paid the entire remaining principal balance of $192.0 million then outstanding on its Term Loan Due 2025, plus accrued interest thereon of $0.7 million, with $190.0 million of new borrowings under the 2023 Revolving Credit Facility and cash on hand. The Company used net proceeds from the August 2025 Refinancing, in part, to repay outstanding amounts borrowed under the 2023 Revolving Credit Facility in full.
During the year ended December 31, 2024, the Company borrowed $20.0 million and repaid $99.0 million under the 2023 Revolving Credit Facility. As of December 31, 2024, the Company had $100.0 million in borrowings and $495.2 million of available capacity under the 2023 Revolving Credit Facility (principal amount of up to $20.2 million remained available for letters of credit).
The 2025 Revolving Credit Facility bears an interest rate equal to the alternate base rate (“ABR”) or SOFR, plus an applicable margin, in each case, subject to an ABR floor of 1.00% or a SOFR floor of 0.00%, as applicable. The applicable margin on borrowings under the 2025 Revolving Credit Facility ranges from 0.25% to 0.50% per annum for ABR loans and from 1.25% to 1.50% per annum for SOFR loans determined by the average historical excess availability. The Company paid a commitment fee based on the average daily unused amount of the 2025 Revolving Credit Facility at a rate of 0.25% per annum.
Covenants to the Senior Secured Credit Facilities
The Senior Secured Credit Facilities contain a number of covenants that, among other things, create liens on Amneal’s and its subsidiaries’ assets. The Senior Secured Credit Facilities contain certain negative covenants that, among other things and subject to certain exceptions, restrict Amneal’s and its subsidiaries’ ability to incur additional debt or guarantees, grant liens, make loans, acquisitions or other investments, dispose of assets, merge, dissolve, liquidate or consolidate, pay dividends or other payments on capital stock, make optional payments or modify certain debt instruments, modify certain organizational documents, enter into arrangements that restrict the ability to pay dividends or grant liens, or enter into or consummate transactions with affiliates. The Senior Secured Credit Facilities contain customary events of default, subject to certain exceptions. Upon the occurrence of certain events of default, the obligations under the Senior Secured Credit Facilities may be
accelerated and the commitments may be terminated. In addition, the 2025 Revolving Credit Facility also includes a financial covenant whereby the Company was required to maintain a minimum fixed-charge coverage ratio if certain borrowing conditions were met. At December 31, 2025, Amneal was in compliance with all covenants associated with the Senior Secured Credit Facilities.
Annually, the Company is also required to calculate the amount of excess cash flows, as defined in the Term Loan Credit Agreement and New Term Loan Credit Agreement. Based on the results of the excess cash flows calculation for the years ended December 31, 2025, 2024 and 2023, no additional principal payments were due.
Rondo Credit Facilities and Note Payable - Related Party
Rondo Acquisitions Financing - Revolving Credit and Term Loan Agreement
On January 31, 2020, in connection with the Rondo Acquisitions, Rondo Intermediate Holdings, LLC (“Rondo Holdings”), a wholly-owned subsidiary of Rondo Holdings, LLC, entered into a revolving credit and term loan agreement (“Rondo Credit Facility”) that provided a term loan (“Rondo Term Loan”) with a principal amount of $180.0 million and a revolving credit facility (“Rondo Revolving Credit Facility”), which loaned up to a principal amount of $30.0 million. During the year ended December 31, 2023, the Company paid the remaining outstanding principal under the Rondo Term Loan from cash on hand.
On April 30, 2023, the Company executed an amendment to the Rondo Revolving Credit Facility, which changed the variable reference rate in the Rondo Term Loan from LIBOR to the one-month adjusted term SOFR, subject to a floor of 0.1% plus 2.25%. On September 21, 2023, the Company executed an amendment to the Rondo Revolving Credit Facility (the “Amended Rondo Revolving Credit Facility”) that, among other things, (i) increased the aggregate revolving commitment from $30.0 million to $70.0 million, and (ii) increased the letter of credit commitment from $10.0 million to $60.0 million. The Amended Rondo Revolving Credit Facility bears a variable annual interest rate, which did not change as a result of this amendment, of one-month adjusted term SOFR, subject to a floor of 0.1% plus 2.25%. On December 16, 2024, the Company executed an amendment to the Amended Rondo Revolving Credit Facility to extend the maturity from January 31, 2025 to April 30, 2025. At December 31, 2024, the variable annual interest rate was one-month SOFR plus 2.5%. Additionally, the annual interest rate for borrowings under the Amended Rondo Revolving Credit Facility may be reduced or increased by 0.25% based on step-downs and step-ups determined by the total net leverage ratio, as defined in that agreement.
As of December 31, 2024, a commitment fee based on the average daily unused amount of the Amended Rondo Revolving Credit Facility was assessed at a rate based on total net leverage ratio, between 0.25% and 0.50% per annum.
On April 9, 2025, the Company amended and restated the Rondo Revolving Credit Facility (“Amended and Restated Rondo Revolving Credit Facility”) to, among other things, (i) increase the aggregate revolving commitment from $70 million to $125 million, (ii) increase the letter of credit commitment from $60 million to $90 million, and (iii) extend the maturity to April 9, 2030. The Amended and Restated Rondo Revolving Credit Facility bears a variable annual interest rate of adjusted term SOFR or the base rate, plus the applicable margin, in each case, subject to a floor of 0.00%. The applicable margin is between 1.75% and 3.00% (in the case of adjusted term SOFR loans) and 0.75% and 2.00% (in the case of base rate loans), and may be reduced or increased by 0.25% based on step-downs and step-ups determined by the total net leverage ratio, as defined in the Amended and Restated Rondo Revolving Credit Facility. In addition, a commitment fee based on the average daily unused amount of the Amended and Restated Rondo Revolving Credit Facility is assessed at a rate based on total net leverage ratio, between 0.20% and 0.35% per annum. At December 31, 2025, the Amended and Restated Rondo Revolving Credit Facility commitment fee rate was 0.25% per annum.
In connection with this amendment, the Company incurred costs of $1.7 million associated with the Amended and Restated Rondo Revolving Credit Facility, which were capitalized and will be amortized over the life of the Amended and Restated Rondo Revolving Credit Facility. For the years ended December 31, 2025, 2024, and 2023, amortization of deferred financing costs associated with the Amended and Restated Rondo Revolving Credit Facility were not material.
The Amended and Restated Rondo Revolving Credit Facility contains a number of covenants that, among other things, create liens on the equity securities and assets of Rondo Holdings, Rondo, AvKARE, LLC and Dixon-Shane, LLC d/b/a R&S Northeast LLC (“R&S”). The Amended and Restated Rondo Revolving Credit Facility contains certain negative, affirmative and financial covenants that, among other things, restrict the ability to incur additional debt, grant liens, transact in mergers and acquisitions, make certain investments and payments or engage in certain transactions with affiliates. The Amended and Restated Rondo Revolving Credit Facility also contains customary events of default. Upon the occurrence of certain events of default, the obligations under the Amended and Restated Rondo Revolving Credit Facility may be accelerated and/or the
interest rate may be increased. At December 31, 2025, Rondo was in compliance with all covenants. The Company is not party to the Amended and Restated Rondo Revolving Credit Facility and is not a guarantor of any debt incurred thereunder.
On September 26, 2023, Rondo entered into a standby letter of credit guarantee arrangement under the Amended Rondo Revolving Credit Facility in the amount of $42.0 million for purposes of securing inventory from a certain supplier. As of December 31, 2025, the Company had no outstanding borrowings and outstanding letters of credit of $42.0 million under the Amended and Restated Rondo Revolving Credit Facility and unused borrowing capacity of $83.0 million.
Rondo Acquisitions Financing – Notes Payable-Related Party
On January 31, 2020, the closing date of the Rondo Acquisitions, Rondo Partners, LLC or its subsidiary, Rondo Top Holdings, LLC, issued notes to the sellers (the “Sellers Notes”) with a stated aggregate principal amount of $44.2 million and a short-term note to a seller (the “Short-Term Seller Note”) with a stated principal amount of $1.0 million. The Sellers Notes were unsecured and accrued interest at a rate of 5% per annum, not compounded, until June 30, 2025. The $9.2 million discount on the Sellers Notes was to be amortized to interest expense using the effective interest method from January 31, 2020 to June 30, 2025 and the carrying value of the Sellers Notes was to accrete to the stated principal amount of $44.2 million. During the year ended December 31, 2024, the Company repaid principal of $44.2 million and interest of $10.0 million associated with the Sellers Notes from cash on hand. As of December 31, 2025 and 2024, the Sellers Notes and accrued interest had been fully repaid. As of December 31, 2025 and December 31, 2024, no amounts were outstanding under the Sellers Notes, and the Company was not party to or a guarantor of the Sellers Notes. During the year ended December 31, 2024 and 2023, amortization of the discount related to the Sellers Notes was $1.1 million and $1.7 million, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 3, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.