By Cristal Cody
Prospect News, March 3 - Valeant Pharmaceuticals International priced $1.5 billion in two tranches of senior notes on Thursday, an informed source said.
The notes (Ba3/BB-/) were offered under Rule 144A and are guaranteed by parent Valeant Pharmaceuticals International, Inc.
The first tranche of $950 million of 6.5% notes due July 15, 2016 priced at par. Initial guidance on the notes was for a 6.25% yield, according to a bond trader from a high-yield mutual fund. The notes are non-callable for two years.
The second tranche of $550 million of 7.25% notes due July 15, 2022 priced at 98.125 to yield 7.5%. Initial guidance on the tranche was 7.25% yield, according to the bond trader. The notes are non-callable for three years.
Goldman Sachs & Co. was the bookrunner. Co-managers were J.P. Morgan Securities LLC and Scotia Capital Inc.
The proceeds will be used to prepay the amounts outstanding under the company's term loan A facility, to finance the redemption of 4% convertible subordinated notes due 2013, to fund the $275 million repurchase of the parent company's common shares from ValueAct Capital Master Fund, LP and for general corporate purposes.
Valeant is a specialty pharmaceutical company based in Mississauga, Ont.
| Issuer: | Valeant Pharmaceuticals International
|
| Guarantor: | Valeant Pharmaceuticals International, Inc.
|
| Amount: | $1.5 billion
|
| Securities: | Senior notes
|
| Bookrunner: | Goldman Sachs & Co.
|
| Co-managers: | J.P. Morgan Securities LLC, Scotia Capital Inc.
|
| Pricing date: | March 3
|
| Settlement date: | March 8
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A
|
|
|
| Notes due 2016
|
| Amount: | $950 million
|
| Maturity: | July 15, 2016
|
| Coupon: | 6.5%
|
| Price: | Par
|
| Yield: | 6.5%
|
| Call feature: | Non-callable for two years
|
| Guidance: | 6.25% yield
|
|
|
| Notes due 2022
|
| Amount: | $550 million
|
| Maturity: | July 15, 2022
|
| Coupon: | 7.25%
|
| Price: | 98.125
|
| Yield: | 7.5%
|
| Call feature: | Non-callable for three years
|
| Guidance: | 7.25% yield
|
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