Investors were ready for a break from the Brexit plunge, and Tuesday delivered the respite they so badly wanted. Amid calls to reconsider the U.K. vote, plans to try to lessen the blow, and more optimistic assessments of the extent of fallout even if Britain does leave the European Union, stock markets regained a portion of their lost ground from the previous two sessions. The Dow climbed nearly 270 points and major market benchmarks rose between 1.5% and 2% on the day, but some stocks managed to post even more substantial gains on Tuesday. Among the day's best performers were Southwestern Energy (NYSE:SWN), Endo International (NASDAQ:ENDP), and LendingClub (NYSE:LC).
Southwestern gets some credit
Southwestern Energy climbed 12% after the energy company announced Monday afternoon that it had restructured some of its credit facilities with its banking partners. The company and its banking group agreed to extend maturities and modify some of the terms and conditions of its credit facilities, including a $2 billion revolving line of credit and a $750 million term loan. Under the new arrangement, Southwestern will have a roughly $1.2 billion secured term loan and a $743 million revolving credit facility, both due in late 2020. Interest rates will rise by just half a percentage point to LIBOR plus 2.5 percentage points, and various financial covenants and restrictions will apply to compensate banks for their added risk level. In addition, Southwestern's existing $750 million term loan was extended until late 2020, with the condition that at least $375 million be paid back by mid-2017. Southwestern expects to use sales of undeveloped properties to reduce debt, and further asset sales will go toward paying down this unsecured term loan. Overall, the arrangement will give Southwestern the flexibility it needs to keep operating efficiently with sufficient liquidity.
Endo scores a patent win
Endo International soared 18% in the wake of the pharmaceutical company's announcement regarding the issuance of a patent for one of its treatments. Endo operating company Par Pharmaceutical received a patent from the U.S. Patent and Trademark Office relating to the Vasostrict vasopressin injection product, which is indicated to increase blood pressure in adults who suffer from vasodilatory shock and therefore need treatment to keep their blood pressure levels high enough. The patent will run until early 2035, and more importantly, its listing in the Orange Book listing of products with therapeutic equivalence evaluations will leave any future generic producer subject to a 30-month stay if it seeks to challenge Endo.
Lending a hand to hard-hit investors
Finally, LendingClub rose 7%. The online lending marketplace announced that Scott Sanborn would become the company's CEO, and Hans Morris will take on the role of chairman of LendingClub's board of directors. The company also said it would cut 179 jobs as part of its response to lower loan volumes in the second quarter, and LendingClub pointed to the near-conclusion of its internal review following concerns that the company's former chief executive accepted company loans for himself and for family members. LendingClub acknowledges that restoring investor confidence will take time, but these are necessary steps to get the lender moving in the right direction once again.