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Valeant to call $500 million of 6¾% notes due 2018 on Thursday
By Susanna Moon
Chicago, July 13 – Valeant Pharmaceuticals International, Inc. plans to redeem its approximately $500 million principal amount of outstanding 6¾% senior notes due 2018 and expected to issue a call later on Thursday.
The debt will be repaid on Aug. 15.
Funding will come from cash on hand.
After the redemption, Valeant will have reduced its debt by more than $4.8 billion since the end of the first quarter of 2016 and will have no significant debt maturities and no mandatory amortization requirements through 2019, according to a company announcement.
The company said it still expects to pay down $5 billion of debt from divestiture proceeds and free cash flow within 18 months of August 2016.
“By redeeming these notes, we will be close to achieving our expectation of paying down $5 billion of debt from divestitures and free cash flow within 18 months of August 2016,” Joseph C. Papa, chairman and chief executive officer of Valeant, said in a company press release.
“We are confident we will not only meet, but also exceed our debt reduction commitment early.”
The notes were issued in 2013. Earlier this year in March, Valeant repurchased about $1.1 billion principal amount of the $1.6 billion notes in a tender offer for cash.
The paying agent is Bank of New York Mellon Trust Co., NA (800 254-2826).
Valeant is a Laval, Quebec-based specialty pharmaceutical company.
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