By Paul A. Harris
Portland, Ore., June 27 - Valeant Pharmaceuticals International, Inc. priced $3,225,000,000 of senior notes (B1/B) in two tranches on Thursday, according to market sources.
The deal included a $1.6 billion tranche of five-year notes that priced at par to yield 6¾%. The yield printed on top of yield talk.
In addition, the company priced a $1,625,000,000 tranche of eight-year notes at par to yield 7½%.
The yield printed on top of yield talk. The initial guidance was in the mid-6% range.
A proposed tranche of 10-year notes was withdrawn.
Goldman Sachs & Co. was the left bookrunner for the Rule 144A for life deal. BofA Merrill Lynch, Barclays, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and RBC Capital Markets are the joint bookrunners.
The issuing entity will be VPII Escrow Corp., a newly formed, wholly owned Canadian subsidiary of Valeant Pharmaceuticals International.
Proceeds will be used to help finance the acquisition of Bausch + Lomb.
Valeant is a Laval, Quebec-based specialty pharmaceutical company. Bausch + Lomb is a Rochester, N.Y.-based eye health company.
| Issuer: | VPII Escrow Corp.
|
| Amount: | $3,225,000,000
|
| Securities: | Senior notes
|
| Left bookrunner: | Goldman Sachs & Co.
|
| Joint bookrunners: | BofA Merrill Lynch, Barclays, J.P. Morgan Securities, LLC, Morgan Stanley & Co. LLC, RBC Capital Markets
|
| Co-managers: | DNB Markets, SunTrust Robinson Humphrey, HSBC, Mitsubishi UFJ, TD Securities
|
| Trade date: | June 27
|
| Settlement date: | July 12
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Five-year notes
|
| Amount: | $1.6 billion
|
| Maturity: | Aug. 15, 2018
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 529 bps
|
| Call protection: | Two years
|
| Price talk: | 6¾% area
|
|
|
| Eight-year notes
|
| Amount: | $1,625,000,000
|
| Maturity: | July 15, 2021
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| Spread: | 531 bps
|
| Call protection: | Three years
|
| Price talk: | 7½% area
|
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