Valeant ups revolver to $275 million, term loan A to $1.225 billion

By Sara Rosenberg

New York, Oct. 17 - Valeant Pharmaceuticals International Inc. increased its revolver to $275 million from $200 million and its funded term loan A to $1.225 billion from $1 billion, according to a market source.

The now $2 billion 41/2-year senior secured credit facility (BBB-), up from $1.7 billion, still includes a $500 million delayed-draw term loan A.

Initial pricing on the facility was left unchanged at Libor plus 275 basis points. The spread can range from Libor plus 250 bps to 300 bps, based on leverage.

Specifically, if leverage is 3.25 times or less, pricing is Libor plus 250 bps, if leverage is more than 3.25 times but less than or equal to 4.0 times, pricing is Libor plus 275 bps, and if leverage is greater than 4.0 times, pricing is Libor plus 300 bps.

The delayed-draw loan has a 50 bps unused fee.

All tranches were sold as a strip.

Goldman Sachs & Co. and J.P. Morgan Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance existing senior secured credit facility debt. As a result of the upsizing, the company will put a little more cash on its balance sheet.

Closing is expected late this week, likely Thursday, subject to market and other customary conditions.

Valeant Pharmaceuticals is a Mississauga, Ont.-based specialty pharmaceutical company that primarily focuses on the areas of neurology, dermatology and branded generics.

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