Valeant Pharma Prices New $900 Million Debt Offering
Continuing its history of using debt to fund acquisitionsand pay down existing liabilities, Canada-based Valeant Pharmaceuticals announced yesterday that it had increased its senior unsecured notes offering from $850 million to $900 million, and priced the notes due 2021 at 5.625%.
Proceeds from the new notes, according to Valeant, will be used to pay down the recently called 6.5% notes due 2016. The senior debt due 2016 will be paid in its entirety in two phases. The first entails paying off $450 million of the old debt immediately, Valeant said, with the final $465.5 million in notes due 2016 redeemed at the close of Valeant's latest debt issuance. Valeant will utilize either $50 million in cash or tap into its existing credit line to fund the remaining redemption balance.
As of its recently completed 2013 third quarter, Valeant had $17 billion in long-term debt on its balance sheet, up from $10.5 billion at the end of 2012. The increase in debt is due primarily to Valeant's acquisitions year to date, including securing approximately $7 billion in debt to complete its recent $8.7 billion deal for Bausch & Lomb.
The new senior debt offering due 2021 is expected to close on Dec. 2, according to Valeant.
The article Valeant Pharma Prices New $900 Million Debt Offering originally appeared on Fool.com.Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool recommends Valeant Pharmaceuticals. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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