New Issue: Valeant Pharmaceuticals upsizes eight-year notes to $300 million, yield 7%

By Paul A. Harris

St. Louis, Dec. 9 - Valeant Pharmaceuticals International priced an upsized issue of $300 million of senior notes due Dec. 15, 2011 (B1/BB-) at par Tuesday to yield 7%, according to a syndicate source.

The deal was increased from $275 million. Price talk was for a yield of 7%-7¼%.

Bear Stearns & Co. ran the books on the Rule 144A transaction. Banc of America Securities and Goldman Sachs & Co. were co-managers.

Valeant will use proceeds to retire its outstanding 6½% convertible subordinated notes due 2008 and for general corporate purposes, including potential acquisitions.

The issuer is a Costa Mesa, Calif.-based pharmaceutical company

Issuer:	Valeant Pharmaceuticals International
Amount:	$300 million (increased from $275 million)
Maturity:	Dec. 15, 2011
Security description:	Senior notes
Bookrunner:	Bear Stearns & Co.
Co-managers:	Banc of America Securities, Goldman Sachs & Co.
Coupon:	7%
Price:	Par
Yield:	7%
Spread:	307 basis points
Call features:	Callable after Dec. 15, 2007 at 103.50, 101.75, par on Dec. 15, 2009 and thereafter
Equity clawback:	Until Dec. 15, 2006 for 35% at 107.0
Settlement date:	Dec. 12
Ratings:	Moody's: B1
	Standard & Poor's: BB-
Rule 144A Cusip:	91911XAE4
Price talk:	7%-7¼%

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