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

To contact the editor responsible for this story: Faris Khan 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.