Valeant Pharmaceuticals International Inc. 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.