Valeant Pharmaceuticals International has closed its previously announced refinancing transactions. These include its offering of $1.25 billion aggregate principal amount of 6.50% senior secured notes due in 2022, and $2 billion aggregate principal amount of 7% senior secured notes due in 2024. The company borrowed an additional $3 billion (approximately) of new term loans maturing in 2022.
“Upon closing these transactions, the issuance of $1.25 billion and $2 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,” said Joseph C. Papa, chairman and CEO of Valeant. “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.”
