Valeant talks $500 million incremental term loan at discount of 971/2-98

By Sara Rosenberg

New York, June 1 - Valeant Pharmaceuticals International Inc. is shopping its $500 million incremental term loan due Feb. 13, 2019 at an original issue discount of 97½ to 98, according to a market source.

Pricing on the loan matches existing term loan B pricing at Libor plus 275 basis points with a 1% Libor floor, the source said, but the existing loan was sold early this year at an original issue discount of 991/2.

Commitments are due on Thursday for the new loan, the source added.

Goldman Sachs & Co. is the lead bank on the deal that launched with a call on Thursday afternoon.

Proceeds will be used to repay borrowings under the company's existing $275 million revolving credit facility and for general corporate purposes, including acquisitions.

Closing is expected in June, subject to market and other customary conditions.

Pro forma senior secured leverage will be 1.7 times, and total leverage will be 3.9 times.

Valeant is a Mississauga, Ont.-based specialty pharmaceutical company.

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