- Valeant Pharmaceuticals (VRX) has closed its refinancing transactions, including its offering of $1.25B aggregate principal amount of 6.50% senior notes due 2022, $2.0B aggregate principal amount 7.00% senior notes due 2024 and borrowing ~$3B via new term loans maturing in 2022.
- Net proceeds, together with cash on hand, will fund the repayment of all term loans under its credit facility maturing in 2018, 2019 and 2020, $350M of borrowings under its credit revolver and $1.1B of its 6.75% senior notes due 2018.
- In addition, the company has amended its existing credit agreements to remove financial maintenance covenants from the term loans, modify the financial maintenance covenants under the revolver and institute certain other amendments.
- Chairman and CEO Joseph C. Papa says, "Upon closing these transactions, the issuance of $1.25 billion and $2.0 billion of senior secured notes due 2022 and 2024, respectively, and the tender for $1.1 billion of our Senior Notes due 2018, the amount of our debt maturing prior to 2020 will be substantially reduced. In addition, the amended terms of the credit agreement will provide us with improved operating flexibility and a greater margin of safety with respect to financial covenants. Together, these transactions, coupled with our ongoing asset sale process, will enable Valeant to focus on driving the fundamental operating performance of its various businesses. We want to thank the lenders, investors and other financial institutions that supported us in the completion of this important initiative."
- Shares are up 1% premarket on average volume.