Valeant to Raise $7.5 Billion in Debt for Bausch & Lomb Purchase

Valeant Pharmaceuticals International Inc. (VRX) will finance its purchase of Bausch & Lomb Holdings Inc. with about $7.5 billion in debt.

Valeant, Canada’s largest drugmaker, will raise a $4.3 billion term loan and sell $3.225 billion in senior unsecured bonds, the company disclosed today in a regulatory filing. Valeant will also seek $1.75 billion in equity.

Proceeds will support the $8.7 billion acquisition and repay about $4.2 billion of Warburg Pincus LLC-owned Bausch & Lomb’s borrowings leaving leverage, a measure of debt to earnings, before taxes, depreciation and amortization at 4.6 times, according to the filing.

Goldman Sachs Group Inc. is arranging the financing, the Montreal-based Valeant and Rochester, New York-based Bausch & Lomb said in a statement on May 27. The transaction is expected to close in the third quarter.

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

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