Valeant holds lender call, reveals expected financing for Bausch buy

By Sara Rosenberg

New York, May 30 - Valeant Pharmaceuticals International Inc. held a call on Thursday to launch an amendment to its existing senior secured credit facility, according to an 8-K filed with the Securities and Exchange Commission.

In the presentation to lenders, the company outlined the expected financing structure for its $8.7 billion acquisition of Bausch + Lomb Holdings Inc.

The company said in the regulatory filing that it anticipates getting a new $4.3 billion term loan, $3.23 billion of new senior unsecured notes and $1.75 billion of new equity for the acquisition.

Goldman Sachs Bank USA is leading the financing.

Pro forma for the transaction, net senior secured leverage is expected to be 2.1 times and net total leverage is expected to be 4.6 times.

Earlier this week, when the acquisition was first announced, Valeant said that the total debt amount would likely be comprised of about 55% of bank debt and about 45% of bonds, and the total debt cost would be in the 4½% to 5% range.

The company also said that equity for the transaction would range between $1.5 billion to $2 billion.

Of the total purchase price, about $4.5 billion will go to an investor group led by Warburg Pincus and about $4.2 billion will be used to repay Bausch + Lomb's outstanding debt.

Closing is expected in the third quarter, subject to customary conditions and regulatory approvals.

Valeant is a Laval, Quebec-based specialty pharmaceutical company. Bausch + Lomb is a Rochester, N.Y.-based eye health.

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