Bloomberg News

Valeant Pharmaceuticals Completes $2 Billion Debt Refinancing

October 21, 2011

Oct. 21 (Bloomberg) -- Valeant Pharmaceuticals International Inc., Canada’s largest drug-maker, got $2 billion in loans to refinance debt.

The financing will be used to repay $615 million in bridge loans and $200 million in revolving loans, according to a statement distributed by PR Newswire.

Valeant’s new facility maturing in 2016 was increased to $2 billion from $1.7 billion and will pay 2.5 percentage points to 3 percentage points more than the London interbank offered rate, according to data compiled by Bloomberg. Pricing will open at 2.75 percentage points more than the lending benchmark, the data show.

The deal consists of a $1.225 billion term loan A, a $275 million revolving line of credit and a $500 million delayed-draw term loan.

“We are pleased to be able to complete our new $2 billion senior secured credit facilities at a favorable interest rate that has now lowered our overall borrowing cost from approximately 6.9 percentage points to 5.8 percentage points,” J. Michael Pearson, chairman and chief executive officer of Valeant, said in an e-mailed statement. “Our ability to upsize this debt demonstrates that Valeant continues to have ready access to the debt markets.”

Goldman Sachs Group Inc. and JPMorgan Chase & Co. arranged the deal for the Mississauga, Ontario-based company.

A term loan A is sold mainly to banks. In a revolving credit facility, money can be borrowed once it’s repaid; in a term loan, it can’t.

--Editors: Faris Khan, John Parry

To contact the reporter on this story: Michael Amato in New York at mamato3@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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