Valeant Pharmaceuticals plans roadshow for $3.2 billion two-part notes

By Paul A. Harris

Portland, Ore., June 19 - Valeant Pharmaceuticals International, Inc. plans to start a roadshow on Thursday in New York City for a $3,225,000,000 two-part offering of senior notes, according to market sources.

Presentations are set for Friday in Boston. On Monday the roadshow moves to the West Coast of the United States.

The deal includes a tranche of eight-year notes, which come with three years of call protection and have initial guidance in the mid-6% range.

In addition Valeant plans to sell 10-year notes, which come with five years of call protection and have initial guidance in the high 6% to low 7% context.

Tranche sizes remain to be determined.

The deal, which is formatted as Rule 144A for life, is set to price mid-to-late in the week ahead. However it could price as early as Tuesday, according to a buyside source who provided deal information on background.

Goldman Sachs & Co. is the left bookrunner. BofA Merrill Lynch, Barclays, J.P. Morgan Securities LLC, Morgan Stanley & Co. and RBC Capital Markets are the joint bookrunners.

DNB Markets, SunTrust Robinson Humphrey, HSBC, Mitsubishi UFJ and TD Securities are the co-managers.

Credit ratings remain to be determined.

The issuing entity will be VPII Escrow Corp., a newly formed, wholly owned Canadian subsidiary of Valeant Pharmaceuticals International.

Proceeds will be used to help finance the acquisition of Bausch + Lomb.

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

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