Valeant Pharmaceuticals kicks off $9.6 billion equivalent four part deal; investor call Tuesday

By Paul A. Harris

Portland, Ore., March 9 – Valeant Pharmaceuticals International Inc. plans to start a roadshow on Tuesday for a $9.6 billion equivalent four-part offering of senior notes (expected ratings B1/B), which are coming in dollar- and euro-denominated tranches, according to an informed source.

The deal features a tranche of dollar-denominated notes due March 2020, as well as tranches of dollar- and euro-denominated notes due September 2023, and a tranche of dollar-denominated notes due March 2025.

An investor call is scheduled for noon ET on Tuesday.

The deal is set to price at the end of the present week.

Deutsche Bank Securities Inc. is the left bookrunner for the Rule 144A and Regulation S for life offer. HSBC Securities (USA) Inc., MUFG, DNB Markets Inc., SunTrust Robinson Humphrey Inc., Barclays, Morgan Stanley & Co., RBC Capital Markets and Citigroup Global Markets are the joint bookrunners.

The notes in all tranches come with initial call premiums that will be set at par plus 50% of the respective coupons. All tranches feature 40% equity clawbacks and 101% poison puts.

Proceeds will be used to help fund the acquisition of Salix Pharmaceuticals Ltd. for about $14.5 billion.

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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