RLPC: Valeant Pharma finalizes Bausch & Lomb acquisition loan

Thu Jun 27, 2013 2:13pm EDT
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By Natalie Wright and Caleb Frazier

June 27 (Reuters) - Valeant Pharmaceuticals has finalized tranche sizes on the new loan backing the company's $8.7 billion acquisition of Bausch & Lomb, sources told Thomson Reuters LPC.

Valeant's new term loan A, which is to be sold mainly to bank lenders, was increased to roughly $850 million from $500 million. The TLA is set to mature in April 2016.

The new term loan E, which is largely marketed to institutional investors, has been downsized to $3.2 billion, from $3.55 billion as initially proposed. The TLE matures in June 2020.

Pricing on the new TLA finalized at LIB+225 with a 98.5 issue price. The new TLE cleared markets at LIB+375, with a 75bp Libor floor, and a 98.5 issue price.

This week, Valeant increased the discount on the new TLA from an initially proposed 99-99.5. In addition, pricing on the TLB was increased from initial guidance of LIB+325-350, with a 75bp Libor floor, and a 99.5 original issue discount.

The increase in pricing during the syndication of Valeant's acquisition loans reflects how broad market volatility is making it more difficult to get deals done in the U.S. leveraged loan market.

Average yields widened to 5.02 percent by the end of last week, up from 4.93 percent the first week of June, according to Thomson Reuters LPC data. U.S. secondary loan prices are now sitting at 98.37, down from 99.07 at the end of May.

The new TLE began trading Thursday afternoon, last quoted at 99.75-100, sources said.   Continued...