| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers V > Headlines for Valeant Pharmaceuticals International > News item |
Moody's rates Valeant notes B1
Moody's Investors Service said it assigned a rating of B1 (LGD 4, 60%) to the new $700 million senior unsecured note issuance of Valeant Pharmaceuticals International, a subsidiary of Valeant Pharmaceuticals International, Inc.
The agency also said it affirmed Valeant's Ba3 corporate family rating, Ba3 probability of default rating and SGL-1 speculative grade liquidity rating, along with its B1 (LGD 4, 60%) senior unsecured notes due 2017 and B1 (LGD 4, 60%) senior unsecured notes due 2020.
The outlook remains positive.
The proceeds are expected to be used to repay $500 million of term loan B borrowings, and for general corporate purposes, Moody's said.
The declining term loan balance and the agency's methodology results in an upgrade of its senior secured term loan A of $1 billion to Baa3 (LGD2, 11%) from Ba1 (LGD2, 21%); senior secured term loan B of $500 million to Baa3 (LGD2, 11%) from Ba1 (LGD2, 21%); senior secured delayed draw term loan of $125 million to Baa3 (LGD2, 11%) from Ba1 (LGD2, 21%) and senior secured revolving credit facility of $125 million to Baa3 (LGD2, 11%) from Ba1 (LGD2, 21%).
Upon Valeant's repayment of term loan B and cancellation of the delayed draw facility, Moody's said it will withdraw the ratings on these instruments.
The ratings continues to reflect the benefits of the recent merger of Biovail Corp. and Valeant, including solid size and scale, good product and geographic diversity and lack of major patent cliffs relative to other specialty pharmaceutical companies, Moody's said.
The ratings are somewhat constrained by integration risks associated with the merger, mixed product utilization trends, and the likelihood of future acquisitions, the agency added.
© 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.