S&P rates Valeant loans BB-, notes B-

S&P said it assigned its BB- issue-level rating and 1 recovery to Valeant Pharmaceuticals International Inc.'s proposed $1.2 billion senior secured revolver, proposed $3.815 billion senior secured term loan and proposed $750 million of senior secured notes.

S&P also assigned a B- issue-level rating and 5 recovery rating to the proposed $750 million senior unsecured notes.

Valeant Pharmaceuticals International is a co-borrower on the credit facilities.

The corporate credit rating remains B with a stable outlook. All other ratings on Valeant are unchanged.

The recovery rating of 1 on the secured debt indicates expectations for very high (90%-100%; rounded estimate: 95%) recovery in the event of default. The recovery rating of 5 on Valeant's unsecured debt indicates expectations for modest (10%-30%; rounded estimate: 25%) recovery to unsecured lenders in the event of payment default.

“Our B corporate credit rating and stable outlook continues to reflect our expectation that Valeant's debt leverage will remain above 7x over the next two years, though the company will continue to generate substantial free cash flow (aided by a low tax rate),” S&P said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.