Bausch Health Companies Inc. (NYSE: BHC) has announced the launch of a private offering of $4.0 billion aggregate principal amount of new senior secured notes due 2032. The offering will be made through its indirect wholly-owned subsidiary, 1261229 B.C. Ltd. The company also seeks to enter into new senior secured credit facilities, including a 5-year senior secured revolving credit facility and a $3,400 million 5.5-year senior secured term loan B facility.
The company intends to use the proceeds from the offering of the notes and the borrowings under the new term loan facility to repay in full and terminate its existing credit agreement. Additionally, it plans to redeem all of its existing notes, including the 5.500% senior secured notes due 2025, 9.000% senior notes due 2025, 6.125% senior secured notes due 2027, 5.750% senior secured notes due 2027, and its indirect subsidiary’s 9.000% senior secured notes due 2028. The company also intends to use the funds for related fees, premiums, expenses, and general corporate purposes.
The notes will be secured by a first priority lien on substantially all assets of the issuer and guaranteed by the company and subsidiaries, with certain guarantees secured by the assets of such guarantors. The company also intends to discharge the applicable indentures governing each of the existing notes to the extent any such existing notes are not redeemed prior to the closing date.
The press release emphasized that the notes will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption. The offering in the United States will only be made to qualified institutional buyers and non-U.S. persons outside of the United States.
Bausch Health Companies Inc. is a global, diversified pharmaceutical company with a focus on products primarily in gastroenterology, hepatology, neurology, dermatology, dentistry, aesthetics, international pharmaceuticals, and eye health, through its controlling interest in Bausch + Lomb Corporation. The market has reacted to these announcements by moving the company's shares -0.6% to a price of $6.97. If you want to know more, read the company's complete 8-K report here.
