Published on 11/14/2017 in the Prospect News Canadian Bonds Daily and Prospect News High Yield Daily.
New Issue: Valeant Pharmaceuticals sells $750 million tap of 5½% secured notes due 2025 at par
By Paul A. Harris
Portland, Ore., Nov. 14 – Valeant Pharmaceuticals International, Inc. priced a $750 million add-on to its 5½% senior secured notes due 2025 (Ba3/BB-) at par on Tuesday afternoon, according to market sources.
The reoffer price came on top of price talk and rendered a 5.498% yield to worst and a 5.499% yield to maturity.
At the time price talk circulated the market, early Tuesday morning, the order book was heard to be three-times oversubscribed, according to a bond trader.
Barclays was the left bookrunner. Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., DNB Markets, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and RBC Capital Markets LLC were the joint bookrunners.
Laval, Quebec-based specialty pharmaceutical company plans to use the proceeds to repay its series F tranche B term loans due 2022.
| Issuer: | Valeant Pharmaceuticals International, Inc.
|
| Amount: | $750 million
|
| Maturity: | Nov. 1, 2025
|
| Security description: | Add-on to 5½% senior secured notes due Nov. 1, 2025
|
| Left bookrunner: | Barclays
|
| Joint bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., DNB Markets, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield to worst: | 5.498%
|
| Yield to maturity: | 5.499%
|
| First call: | Make-whole call at Treasuries plus 50 bps until Nov. 1, 2020, then callable at 102.75
|
| Equity clawback: | 40% at 105.5 until Nov. 1, 2020
|
| Trade date: | Nov. 14
|
| Settlement date: | Nov. 21
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | Par
|
| Marketing: | Investor call
|
| Original issue: | $1 billion priced at par on Oct. 2, 2017
|
| Fungibility: | Add-on notes will become immediately fungible with original notes
|
| Total issue size: | $1.75 billion
|
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