|PRINT | CLOSE WINDOW|
Valeant Pharmaceuticals Inc. plans to take on $7.5 billion in debt to finance its purchase of Bausch & Lomb Inc.
Valeant detailed the planned debt load in a May 30 Securities and Exchange Commission filing, listing a plan to borrow $4.3 billion in term loans and raise $3.2 billion with a bond offering.
The filing also lists a $450 million revolving loan from which Valeant has drawn $250 million to cover expenses of a December acquisition but does not currently identify the revolver as a source of financing for the Bausch & Lomb purchase.
Quebec-based Valeant and Bausch & Lomb announced a deal Monday calling for Valeant to pay Bausch & Lomb’s private equity owner, Warburg Pincus LLC, $8.7 billion for the Rochester-based eye-care company. The deal is slated to close in fourth quarter, the companies said.
Roughly half of the $8.7 billion would go to Warburg Pincus in a cash payment. Valeant’s agreement to assume Bausch & Lomb’s debt, which includes $800 million the eye-care company borrowed last year to pay a shareholder dividend, accounts for the rest.
(c) 2013 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail email@example.com.