Bausch Health Companies Inc. has successfully priced its upsized private offering of senior secured notes. The initial offering size of $4.0 billion aggregate principal amount was increased to $4.4 billion aggregate principal amount. The offering is expected to close on April 8, 2025. Additionally, the company is seeking to enter into new senior secured credit facilities, consisting of a $500 million 5-year senior secured revolving credit facility and a $3.0 billion 5.5-year senior secured term loan B facility. The size of the new term loan facility was reduced from $3.4 billion to $3.0 billion.
The proceeds from the offering, together with the borrowings under the new term loan facility, will be used for various purposes, including the repayment and termination of the company’s existing credit agreement, redemption of existing notes, payment of related fees, premiums, and expenses, and for 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 certain subsidiaries. The redemption of the existing notes is conditioned upon the closing of debt financing transactions satisfactory to the company prior to the applicable redemption dates.
It's noteworthy that the notes will not be registered under the securities act of 1933, as amended, and may only be offered or sold in the United States to qualified institutional buyers and non-U.S. persons outside of the United States.
This development comes as Bausch Health Companies Inc. continues its drive to deliver better healthcare outcomes, leveraging its diversified pharmaceutical portfolio. The market has reacted to these announcements by moving the company's shares -1.9% to a price of $7.13. For more information, read the company's full 8-K submission here.
