| NEW YORK, March 14
NEW YORK, March 14 Drugmaker Valeant
Pharmaceuticals will not see any changes to its planned
refinancing in the wake of billionaire William Ackman and his
hedge fund Pershing Square selling its share of the company,
Valeant is extending the maturity date on three loans to
2022 in order to match the maturity date of its term loan F. The
company is also paying down revolving credit debt and its term
loan A debt as part of the refinancing effort, which includes
the US$3.25bn sale of secured notes.
The company, which has approximately US$30bn in debt, saw
its stock drop to all-time lows as it dipped under US$11 per
share on Tuesday after news emerged that Ackman and his hedge
funder were selling their entire position of approximately 27
million shares. The stock was trading north of US$250m during
“The amendment has been approved and the term loan F will be
allocating today,” said a source familiar with the transaction.
"The deal has been finalized and is not impacted by the Ackman
Valeant asked lenders to allow it to extend the maturity on
three term loans to match the 2022 maturity of its term loan F.
The company also requested the removal of two covenants
requiring a specific interest coverage amount and setting a
maximum amount of secured leverage.
The amount of debt being added to the loan due in 2022
totaled US$3.06bn. Both the existing loan and add-on are priced
at 475bp over Libor with a 0.75% floor. The add-on priced at a
discount of 99.75 cents on the dollar. Barclays led the
The bank also led the sale of US$1.25bn of 6.5% notes due in
March 2022 and US$2bn of 7% notes due in March 2024. Both were
issued on a secured basis.
The new notes traded down about 0.8 points with the 6.5%
notes on the Ackman news settling at 101 and the 7% notes
trading at 101.25, according to MarketAxess data.
The company’s unsecured notes fell by as many as 2.25
The loan debt traded better and remained unchanged. The
existing term loan F was trading in the 100.375-100.75 context
on Tuesday, sources said.
Barclays declined comment. Valeant did not immediately
return a request for comment.
(Additional reporting by Lisa Lee and Davide Scigliuzzo.)
(Reporting by Jonathan Schwarzberg; Editing By Tessa Walsh)