Valeant kicks off $5.55 billion loan package, sets Monday bank meeting

By Paul A. Harris

Portland, Ore., March 5 – Valeant Pharmaceuticals International Inc. set a Monday bank meeting for $5.55 billion of incremental term loan debt (Ba1/BB), according to a market source.

The term loan debt is split between a $1 billion incremental five-year term loan A and a $4.55 billion seven-year incremental term loan B.

Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., the Bank of Tokyo-Mitsubishi UFJ Ltd., DNB Markets Inc. and SunTrust Robinson Humphrey Inc. are the joint lead arrangers and bookrunners.

Pricing remains to be determined.

Proceeds, along with proceeds from the issuance of $9.6 billion of senior unsecured notes, will be used to fund the acquisition of Salix Pharmaceuticals Ltd. for $158 per share in cash, or a total enterprise value of about $14.5 billion.

Closing is expected in the second quarter, subject to customary conditions and regulatory approval.

Valeant is a Laval, Quebec-based specialty pharmaceutical company. Salix is a Raleigh, N.C.-based developer and marketer of prescription pharmaceutical products and medical devices for the prevention and treatment of gastrointestinal diseases.

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