Valeant to borrow $1 billion in bond market to help fund repayment of existing debt
Valeant Pharmaceuticals International Inc. (VRX.T) said Monday it is planning to issue $1 billion of bonds due 2025 and will use the proceeds to help fund the repurchase of existing notes. The company, which is struggling with a $28 billion debt burden, said it would add cash on hand to repurchase $1 billion of outstanding 5.375% notes due 2020, It will also repurchase 7.000% notes due 2020 and 6.375% notes due 2020 issued by a subsidiary and pay related fees and costs. The company has said this year that it expects to exceed its goal of paying down more than $5 billion of debt by February 2018. The Montreal-based company is still trying to recover from an accounting and drug pricing scandal that engulfed it in 2015. Shares were down 0.6% premarket and have lost 1.3% in 2017, while the S&P 500 has gained 12%. The company's most active bonds, the 6.375% notes due 2020, last traded at 100.34 cents on the dollar, according to MarketAxess.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
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