Valeant Pharmaceuticals Secures Revised Credit Facility from Bank Consortium

Valeant Pharmaceuticals International, a specialty pharmaceutical provider, has secured a revised credit facility from a bank consortium comprising Goldman Sachs, Morgan Stanley, and Jefferies. The revised credit facility includes a term loan A of $950 million, up from the original $750 million, and a term loan B of approximately $650 million. The banks have also lowered the spread on the term loan B and narrowed the OID.

Key Takeaways:

• The bank consortium has increased the size of the term loan A to $950 million, a $200 million increase from the original $750 million.
• The term loan B has been reduced to around $650 million, down from the original amount.
• The spread on the term loan B has been lowered to Libor plus 400 bps from a range between Libor plus 400 bps and Libor plus 425 bps.
• The OID on the term loan B has been narrowed to 99 from 98.5.
• The 1.75% Libor floor was left unchanged.
• The company plans to use the proceeds to refinance existing debt, including 7.625% senior notes due 2020 and 8.375% senior notes due 2016.
• Valeant will also pay a dividend to shareholders of $16.77 per share on the day before the merger with Biovail closes.
• The financing includes $1 billion in senior unsecured notes, with pricing and launch date still to be determined.

Statistics:

• $950 million: The increased size of the term loan A.
• $650 million: The revised size of the term loan B.
• 400 bps: The revised spread on the term loan B.
• 99: The revised OID on the term loan B.
• 7.625%: The interest rate on the senior notes due in 2020.
• 8.375%: The interest rate on the senior notes due in 2016.
• $16.77: The dividend payment to shareholders per share.
• $1 billion: The amount of senior unsecured notes to be issued.

Sources:

• Standard & Poor's - no date provided.