Bausch & Lomb discloses term loan pricing guidance with launch

By Sara Rosenberg

New York, April 19 - Bausch & Lomb came out with price talk on its term loan tranches with its Thursday morning bank meeting, according to a market source.

The $2.035 billion covenant-light term loan B and $350 million covenant-light delayed-draw term loan are talked at Libor plus 375 basis points to 400 bps with a 1% Libor floor and an original issue discount of 99, the source said.

And, the $600 million covenant-light euro term loan B is talked at Euribor plus 400 bps to 425 bps with a 1% floor and a discount of 99, the source continued.

All of the term loan tranches include 101 soft call protection for one year.

The company's $3.485 billion credit facility also includes a $500 million revolver.

Commitments are due on May 2, the source added.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and Bank of America Merrill Lynch are the bookrunners on the deal.

Proceeds will be used to refinance existing debt and fund the acquisition of ISTA Pharmaceuticals Inc. for $9.10 per share in cash, or a total of about $500 million.

Closing on the acquisition is expected in the second quarter, subject to regulatory approval and other customary conditions, including the approval of ISTA's shareholders.

Bausch & Lomb is a Rochester, N.Y.-based eye health company. ISTA is an Irvine, Calif.-based branded prescription eye care business.

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