Valeant Sells $3.23 Billion of Bonds for Bausch & Lomb Purchase

Valeant Pharmaceuticals International Inc. (VRX), the drug distributor acquiring Bausch & Lomb Holdings Inc., issued $3.23 billion of debt in the U.S. to help fund the purchase.

The company sold $1.6 billion of 6.75 percent, five-year notes at 150 basis points more than similar-maturity Treasuries and $1.63 billion of 7.5 percent, eight-year securities paying 531 basis points more, according to data compiled by Bloomberg. The debt is rated B1 by Moody’s Investors Service and B by Standard & Poor’s, the data show.

Valeant dropped plans to issue 10-year notes, instead offering the five-year securities, after starting to market the debt last week, a person with knowledge of the transaction said June 25.

The Laval, Quebec-based company will use the proceeds from the bond sale and $4.05 billion in loans to support its $8.7 billion acquisition of Bausch & Lomb and to repay about $4.2 billion of borrowings by the Warburg Pincus LLC-owned eye-care company, it said in a May 30 regulatory filing.

Goldman Sachs Group Inc., Bank of America Corp., Barclays Plc, JPMorgan Chase & Co., Morgan Stanley, and Royal Bank of Canada managed the bond offering, Bloomberg data show.

To contact the reporter on this story: Sarika Gangar in New York at

To contact the editor responsible for this story Alan Goldstein at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.