| NEW YORK, June 18
NEW YORK, June 18 Valeant Pharmaceuticals
has set a bank meeting for Wednesday to launch a $9.3
billion financing package backing the company's $8.7 billion
acquisition of Bausch & Lomb, sources told Thomson
Goldman Sachs is lead left, joined by JP Morgan, Bank of
America Merrill Lynch, Barclays, Morgan Stanley and RBC as
arrangers. The new credit will include $4.3 billion of term
loans, $3.275 billion of senior notes and $1.75 billion of
The bank meeting is set for 10 a.m.
According to a company SEC filing, the new term loan is
expected to be a $4.3 billion, seven-year incremental term loan
at a spread of LIB+275, with a 75bp Libor floor. It will be
drawn upon consummation of the acquisition. The term loan is
expected to be issued at 99.5, and to have 1 percent annual
amortization, according to the filing.
In connection with the acquisition, Valeant has secured a
$9.3 billion bridge loan that will be termed out through the
incremental term loan, the new senior unsecured notes, and the
issuance of new equity prior to the Bausch & Lomb acquisition.
Valeant announced its acquisition of global eye health
company Bausch & Lomb on May 27. Bausch & Lomb will retain its
name and become a division of Valeant.