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 sgangar@bloomberg.net

To contact the editor responsible for this story Alan Goldstein at agoldstein5@bloomberg.net

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