Valeant Seeks to Reduce Rate on $3.2 Billion Loan, Extend Debt

Valeant Pharmaceuticals International Inc. (VRX) is seeking to lower the rate and extend maturities on $5.7 billion of loans, including debt raised to back its August purchase of Bausch & Lomb Holdings Inc.

The Canadian drug distributor is meeting with lenders today to lower the interest rate on a $3.2 billion term B portion to 2.75 percentage points to 3 percentage points more than the London interbank offered rate, down from 3.75 percentage points, the company said in a regulatory filing.

Valeant also seeks to extend maturities on a $1.695 billion A-1 piece and a $765 million A-2 portion to October 2018, from April 2016. Lenders are offered a 15 basis-point extension fee. A basis point is 0.01 percentage point.

The Laval, Quebec-based company bought eye-care company Bausch & Lomb from Warburg Pincus LLC for about $8.7 billion.

The term B loan was quoted at 101.25 cents on the dollar today, up from 100.125 cents on July 3, according to prices compiled by Bloomberg.

A term loan B is sold mainly to non-bank lenders such as collateralized loan obligations, bank loan mutual funds and hedge funds. A term loan A is sold mainly to banks.

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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