(Updates with bond details)
By Jonathan Schwarzberg and Kristen Haunss
NEW YORK, March 6 Valeant Pharmaceuticals
International Inc plans to line up a US$3.06bn incremental term
loan and junk bond sale as part of a debt restructuring, sources
In addition to the new debt offering, the company paid down
about US$1.1bn of senior secured term loans with proceeds from
the sale of its skincare products assets on March 3, according
to a Monday regulatory filing.
Valeant is also repaying a portion of its 6.75% senior notes
due in 2018 and extending the maturity date of its revolving
credit facility with the proceeds from the new loan and a
secured high-yield bond.
"This debt repayment further enhances the company's
confidence in meeting its goals, and it is taking this
opportunity to refinance and amend additional portions of its
outstanding debt to further create operating flexibility," the
company said in the filing.
The new loan is scheduled to launch during a lenders call
late Monday morning. Commitments are due March 10.
Barclays leads the deal with Goldman Sachs.
As part of the transaction, Valeant is seeking to remove
maintenance covenants from its term B loans and modify its
revolver maintenance covenants.
The new debt will be fungible with the company's term loan F
due in April 2022.
The proceeds will allow Valeant to extend the maturity of
three separate term loans by combining them with the term loan
Pricing is expected to be 475bp over Libor with a 0.75%
floor, which is the same as the existing term loan F.
Valeant is offering lenders an original issue discount of
99.75 cents on the dollar.
The company is proposed to pay its existing term loan F
lenders an amendment fee of 25bp.
Barclays declined to comment. A representative from Goldman
Sachs was not immediately available for comment.
A spokesperson for Valeant did not immediately return a
telephone call seeking comment.
(Additional reporting by Davide Scigliuzzo with IFR.)
(Reporting by Jonathan Schwarzberg and Kristen Haunss; Editing
By Lynn Adler and Jon Methven)