Valeant tenders for $1 billion notes oversubscribed at early deadline

By Wendy Van Sickle

Columbus, Ohio, Oct. 16 – Valeant Pharmaceuticals International, Inc. announced the early results of its cash tender offers to purchase up to $1 billion principal amount of three series of notes.

The capped tenders are being held with wholly owned subsidiary Valeant Pharmaceuticals International.

As of the early deadline, 5 p.m. ET on Oct. 16, the company said it received and will accept tenders of $431,331,000 of its $690 million of the subsidiary’s 7% senior notes due 2020. The notes had the first acceptance priority.

It said it received tenders of $1,465,444,000 of the subsidiary’s $2.25 billion 6 3/8% senior notes due 2020 and will accept $568,669,000 of those tendered notes. These notes had the second acceptance priority.

The company said it received tenders of $1,100,479,000 of its 5 3/8% senior notes due 2020 and will accept none of those tenders due to the offer being oversubscribed. These notes were third in terms of acceptance priority.

The total purchase price offered for each $1,000 principal amount are as follow:

• $1,011.67 for the subsidiary’s 7% senior notes due 2020;

• $1,010 for the subsidiary’s 6 3/8% senior notes due 2020; and

• $1,000 for Valeant’s 5 3/8% senior notes due 2020, which had a tender sub-cap of $100 million.

The total purchase price includes an early tender premium of $30.00 for each $1,000 principal amount.

Holders also will receive accrued interest to but excluding the settlement date.

The tender offers will end at 11:59 p.m. ET on Oct. 30, but the company will not accept any additional tendered notes.

The tender offers were announced on Oct. 2.

The offers were not conditioned upon a minimum amount of notes being tendered but were contingent upon Valeant obtaining proceeds from a concurrent private offering of senior notes to finance the notes purchase, which the company said it expects to happen by the early settlement date of Oct. 17.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) is the dealer manager. Global Bondholder Services Corp. (866 470-4200 or 212 430-3774) is the depositary and information agent.

Valeant is a Laval, Quebec-based specialty pharmaceutical company.

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