Valeant Walks Knife’s Edge of Debt Limits With Forecast Cut
- Bonds fall to lowest in a month after earnings report
- New Ebitda projects are close to limit of debt agreements
Valeant Falls After Cutting Profit Forecast
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Valeant Pharmaceuticals International Inc. is walking a very fine line with its $31 billion of debt.
On Tuesday, the drugmaker for the second time this year cut its forecast of a measure of earnings widely followed by lenders. The profit figure -- adjusted earnings before interest, taxes, depreciation and amortization, or Ebitda, is projected to drop to $4.8 billion to $4.95 billion, down from a March estimate of $5.6 billion to $5.8 billion.