RLPC: Valeant Pharma to launch $9.3B acq. financing

Tue Jun 18, 2013 9:27am EDT
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By Natalie Wright

NEW YORK, June 18 (Reuters) - Valeant Pharmaceuticals has set a bank meeting for Wednesday to launch a $9.3 billion financing package backing the company's $8.7 billion acquisition of Bausch & Lomb, sources told Thomson Reuters LPC.

Goldman Sachs is lead left, joined by JP Morgan, Bank of America Merrill Lynch, Barclays, Morgan Stanley and RBC as arrangers. The new credit will include $4.3 billion of term loans, $3.275 billion of senior notes and $1.75 billion of equity.

The bank meeting is set for 10 a.m.

According to a company SEC filing, the new term loan is expected to be a $4.3 billion, seven-year incremental term loan at a spread of LIB+275, with a 75bp Libor floor. It will be drawn upon consummation of the acquisition. The term loan is expected to be issued at 99.5, and to have 1 percent annual amortization, according to the filing.

In connection with the acquisition, Valeant has secured a $9.3 billion bridge loan that will be termed out through the incremental term loan, the new senior unsecured notes, and the issuance of new equity prior to the Bausch & Lomb acquisition.

Valeant announced its acquisition of global eye health company Bausch & Lomb on May 27. Bausch & Lomb will retain its name and become a division of Valeant.