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Valeant Pharmaceuticals intends to price $2.25 billion of notes in three parts on Thursday
By Paul A. Harris
Portland, Ore., Sept. 19 - Valeant Pharmaceuticals International Inc. is expected to price a $2.25 billion three-part offering of notes (B1/BB-) on Thursday, according to a buyside source.
The deal was announced as Wednesday's business but was subsequently pushed into the Thursday session, the source added.
Included is a $500 million fungible add-on to the company's 7¼% notes due July 15, 2022. Although there is no official price talk, guidance is 104.75 to 105, the source said. Proceeds from the add-on will be used for general corporate purposes, including acquisitions.
In addition the company is expected to bring a $1 billion non-fungible tranche of notes mirroring its 7% notes due 2020 and a $750 million non-fungible tranche of notes mirroring its 7¼% notes due 2022.
Those tranche sizes remain in play, the source said.
Again, there is no official talk. However the mirror notes are expected to come approximately 25 basis points behind the existing notes, the source said, adding that the 7% notes due 2020 are trading at 105.75 bid, 106.50 offered, and the 7¼% notes due 2022 are trading at 106 bid, 107 offered.
Proceeds from the mirror notes tranches will be used to help fund acquisition of Medicis Pharmaceutical Corp.
J.P. Morgan Securities LLC, Goldman Sachs & Co. and RBC are the joint bookrunners. Bank of America Merrill Lynch and Morgan Stanley & Co. are the senior co-managers.
Barclays, SunTrust Robinson Humphrey, DNB and Scotia Capital are the co-managers.
The prospective issuer is a Mississauga, Ont.-based specialty pharmaceutical company.
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