By Paul A. Harris
St. Louis, Oct. 16 - Underwriters priced a $650 million tranche of Bausch & Lomb Inc. 9 7/8% eight-year senior cash-pay notes (Caa1/B-) at 99.75 to yield 9.92% on Tuesday, according to an informed source.
The yield was printed below the mid-point of the 10% area price talk.
The cash-pay notes tranche was upsized from $400 million. However the overall size of the planned bond offering was downsized to $650 million from $750 million, with $100 million shifted to the bank loan.
The deal was also restructured: a $175 million tranche of eight-year senior toggle notes and a $175 million tranche of 10-year senior subordinated notes were withdrawn.
Banc of America Securities LLC was the left bookrunner for the Rule 144A with registration rights notes issue. Credit Suisse, Citigroup and JP Morgan are joint bookrunners.
Proceeds will be used to help fund the leveraged buyout of the company by Warburg Pincus.
Bausch & Lomb is a Rochester, N.Y., eye health care company.
| Issuer: | Bausch & Lomb Inc.
|
| Amount: | $650 million (cash-pay notes increased from $400 million; overall bond transaction decreased from $750 million with $100 million shifted to bank loan)
|
| Maturity: | Nov. 1, 2015
|
| Security description: | Senior cash-pay notes (senior toggle notes and senior subordinated notes withdrawn)
|
| Left bookrunner: | Banc of America Securities LLC
|
| Joint bookrunners: | Credit Suisse, Citigroup, JP Morgan
|
| Coupon: | 9 7/8%
|
| Price: | 99.75
|
| Yield: | 9.92%
|
| Spread: | 537 bps
|
| Call features: | Make-whole at Treasuries plus 50 bps until Nov. 1, 2011, then callable at 104.938, 102.469, par on and after Nov. 1, 2013
|
| Equity clawback: | Until Nov. 1, 2010 for 35% at 109.875
|
| Trade date: | Oct. 16
|
| Settlement date: | Oct. 26
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 10% area
|
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