LAVAL, Quebec, May 10, 2018 /PRNewswire/ -- Valeant
Pharmaceuticals International, Inc. (NYSE/TSX: VRX) ("Valeant" or
the "Company") today announced that it is seeking to amend and
restate its existing credit agreement (the "Credit Agreement") and
borrow $3.815 billion of new Term B
loans (the "New Term B Loans") under the Credit Agreement. The
amendment and restatement is expected to have the effect of (i)
extending the maturity date of the revolving facility to five years
from the closing date, in an amount up to $1.2 billion (subject to a springing maturity
with respect to the earlier maturity of debt in excess of
$1.0 billion), (ii) replacing the
Term B loans currently outstanding under the Credit Agreement with
the New Term B Loans, which will have a maturity date that is seven
years from the closing date, (iii) modifying the covenants to
provide the Company with enhanced operating flexibility, (iv)
adding the Company's wholly owned subsidiary, Valeant
Pharmaceuticals International ("VPI") as a co-borrower and (v)
lowering the interest rates applicable to the Credit Agreement. The
Company also intends, subject to market conditions, to have VPI
issue $750 million of secured debt
securities and $750 million of
unsecured debt securities (together, the "New Debt
Securities").
The proceeds of the New Term B Loans and the New Debt Securities
are expected to be used to refinance the Company's outstanding Term
B loans and redeem the 5.375% Senior Notes due 2020, 6.375% Senior
Notes due 2020, 6.75% Senior Notes due 2021 and 7.25% Senior Notes
due 2022.
The foregoing transactions are subject to market and other
conditions and are anticipated to close in the second quarter of
2018. However, there can be no assurance that the Company will be
able to successfully complete the transactions, on the terms
described above, or at all.
The New Debt Securities will not be registered under the
Securities Act of 1933, as amended (the "Securities Act"), or any
state securities law and may not be offered or sold in the United States absent registration or an
applicable exemption from registration under the Securities Act and
applicable state securities laws. The New Debt Securities have not
been and will not be qualified for sale to the public by prospectus
under applicable Canadian securities laws and, accordingly, any
offer and sale of the securities in Canada will be made on a basis which is exempt
from the prospectus requirements of such securities laws.
This release is being issued pursuant to Rule 135c under the
Securities Act and shall not constitute an offer to sell or the
solicitation of an offer to sell or the solicitation of an offer to
buy any securities, nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
About Valeant
Valeant Pharmaceuticals
International, Inc. (NYSE/TSX: VRX) is a global company whose
mission is to improve people's lives with our health care products.
We develop, manufacture and market a range of pharmaceutical,
medical device and over-the-counter products, primarily in the
therapeutic areas of eye health, gastroenterology and dermatology.
We are delivering on our commitments as we build an innovative
company dedicated to advancing global health.
Forward-looking Statements
This news release
may contain forward-looking statements, including, but not limited
to, our refinancing transaction and the details thereof, including
the proposed use of proceeds therefrom, the expected timing of the
closing of the refinancing and our ability to close such
refinancing, the planned amendments to our Credit Agreement
proposed in connection with such refinancing, the potential
offering debt securities proposed in connection with the
refinancing and the details thereof, the potential extension of the
maturity date of the revolving facility and the Term B loans and
the other expected effects of the refinancing. Forward-looking
statements may generally be identified by the use of the words
"anticipates," "expects," "intends," "plans," "should," "could,"
"would," "may," "will," "believes," "estimates," "potential,"
"target," or "continue" and variations or similar expressions.
These statements are based upon the current expectations and
beliefs of management and are subject to certain risks and
uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. These risks
and uncertainties include, but are not limited to, risks and
uncertainties discussed in the Company's most recent annual and
quarterly reports and detailed from time to time in Valeant's other
filings with the Securities and Exchange Commission and the
Canadian Securities Administrators, which factors are incorporated
herein by reference. Readers are cautioned not to place undue
reliance on any of these forward-looking statements. These
forward-looking statements speak only as of the date hereof.
Valeant undertakes no obligation to update any of these
forward-looking statements to reflect events or circumstances after
the date of this news release or to reflect actual outcomes, unless
required by law.
Investor
Contact:
|
Media
Contact:
|
Arthur
Shannon
|
Lainie
Keller
|
arthur.shannon@valeant.com
|
lainie.keller@valeant.com
|
(514)
856-3855
|
(908)
927-0617
|
(877) 281-6642 (toll
free)
|
|
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SOURCE Valeant Pharmaceuticals International, Inc.