Bausch Health Announces Launch of Syndication of New Senior Secured Credit Facilities
Bausch Health (BHC) has launched the syndication of new senior secured credit facilities totaling at least $3.8 billion, consisting of a 5-year $400 million senior secured revolving credit facility and a $3.4 billion 5.5-year secured term loan B facility. The transaction, led by JPMorgan Chase Bank, is part of a broader refinancing initiative to address near- and mid-term maturities.
The facilities will be secured by first-priority liens on the borrower's assets, including Bausch + Lomb equity interest. The company plans to use proceeds to repay existing credit agreements, redeem various senior secured and senior notes due between 2025-2028, and for general corporate purposes. Bausch Health reduced net debt by nearly $1 billion in 2024 and reports seven consecutive quarters of top- and bottom-line growth.
Bausch Health (BHC) ha avviato la sindacazione di nuove strutture di credito senior garantite per un totale di almeno 3,8 miliardi di dollari, consistenti in un credito rotativo senior garantito di 400 milioni di dollari della durata di 5 anni e in un prestito a termine B garantito di 3,4 miliardi di dollari della durata di 5,5 anni. La transazione, guidata da JPMorgan Chase Bank, fa parte di un'iniziativa di rifinanziamento più ampia per affrontare le scadenze a breve e medio termine.
Le strutture saranno garantite da privilegi di prima priorità sugli attivi del mutuatario, inclusi gli interessi azionari di Bausch + Lomb. L'azienda prevede di utilizzare i proventi per rimborsare gli accordi di credito esistenti, riscattare vari prestiti senior garantiti e note senior in scadenza tra il 2025 e il 2028, e per scopi aziendali generali. Bausch Health ha ridotto il debito netto di quasi 1 miliardo di dollari nel 2024 e riporta sette trimestri consecutivi di crescita sia del fatturato che dell'utile netto.
Bausch Health (BHC) ha lanzado la sindicación de nuevas instalaciones de crédito senior garantizadas por un total de al menos 3.8 mil millones de dólares, que consisten en una línea de crédito rotativa senior garantizada de 400 millones de dólares a 5 años y un préstamo a plazo B garantizado de 3.4 mil millones de dólares a 5.5 años. La transacción, liderada por JPMorgan Chase Bank, forma parte de una iniciativa de refinanciamiento más amplia para abordar los vencimientos a corto y medio plazo.
Las instalaciones estarán garantizadas por gravámenes de primera prioridad sobre los activos del prestatario, incluidos los intereses en acciones de Bausch + Lomb. La empresa planea utilizar los ingresos para pagar acuerdos de crédito existentes, redimir varios préstamos senior garantizados y notas senior que vencen entre 2025 y 2028, y para fines corporativos generales. Bausch Health redujo la deuda neta en casi 1 mil millones de dólares en 2024 y reporta siete trimestres consecutivos de crecimiento tanto en ingresos como en ganancias.
바우쉬 헬스 (BHC)는 38억 달러 이상의 새로운 선순위 담보 신용 시설의 배급을 시작했습니다. 이 시설은 5년 만기 4억 달러 규모의 선순위 담보 회전 신용 시설과 5.5년 만기 34억 달러 규모의 담보 정기 대출 B로 구성됩니다. 이 거래는 JPMorgan Chase Bank가 주도하며, 단기 및 중기 만기를 해결하기 위한 보다 광범위한 재융자 계획의 일환입니다.
이 시설은 차입자의 자산에 대한 1순위 담보권으로 보장되며, 여기에는 바우쉬 + 롬의 주식이 포함됩니다. 회사는 수익금을 기존 신용 계약 상환, 2025년에서 2028년 사이에 만기가 도래하는 다양한 선순위 담보 및 선순위 채권을 상환하며, 일반 기업 목적에 사용할 계획입니다. 바우쉬 헬스는 2024년에 순부채를 거의 10억 달러 줄였습니다 그리고 매출과 순이익 모두에서 7분기 연속 성장을 보고하고 있습니다.
Bausch Health (BHC) a lancé la syndication de nouvelles facilités de crédit senior sécurisées totalisant au moins 3,8 milliards de dollars, comprenant une facilité de crédit revolving senior sécurisée de 400 millions de dollars sur 5 ans et un prêt à terme B sécurisé de 3,4 milliards de dollars sur 5,5 ans. La transaction, dirigée par JPMorgan Chase Bank, fait partie d'une initiative de refinancement plus large pour faire face aux échéances à court et moyen terme.
Les facilités seront garanties par des privilèges de premier rang sur les actifs de l'emprunteur, y compris l'intérêt en actions de Bausch + Lomb. L'entreprise prévoit d'utiliser les produits pour rembourser des accords de crédit existants, racheter diverses obligations senior sécurisées et notes senior arrivant à échéance entre 2025 et 2028, et pour des besoins d'entreprise généraux. Bausch Health a réduit sa dette nette de près de 1 milliard de dollars en 2024 et fait état de sept trimestres consécutifs de croissance tant du chiffre d'affaires que du bénéfice net.
Bausch Health (BHC) hat die Syndizierung neuer senior gesicherter Kreditfazilitäten in Höhe von mindestens 3,8 Milliarden Dollar gestartet, bestehend aus einer 5-jährigen, 400 Millionen Dollar umfassenden senior gesicherten revolvierenden Kreditfazilität und einem 3,4 Milliarden Dollar umfassenden, 5,5-jährigen gesicherten Terminkredit B. Die Transaktion, die von der JPMorgan Chase Bank geleitet wird, ist Teil einer umfassenderen Refinanzierungsinitiative zur Bewältigung von kurz- und mittelfristigen Fälligkeiten.
Die Fazilitäten werden durch vorrangige Pfandrechte an den Vermögenswerten des Kreditnehmers gesichert, einschließlich der Eigenkapitalanteile von Bausch + Lomb. Das Unternehmen plant, die Erlöse zur Rückzahlung bestehender Kreditvereinbarungen, zur Rückzahlung verschiedener senior gesicherter und senior Anleihen, die zwischen 2025 und 2028 fällig werden, sowie für allgemeine Unternehmenszwecke zu verwenden. Bausch Health hat die Nettoverschuldung im Jahr 2024 um fast 1 Milliarde Dollar reduziert und berichtet von sieben aufeinander folgenden Quartalen mit Wachstum bei Umsatz und Gewinn.
- Secured $3.8 billion in new credit facilities to refinance debt
- Reduced net debt by nearly $1 billion in 2024
- Seven consecutive quarters of top- and bottom-line growth
- Extension of debt maturities through refinancing
- High debt levels requiring substantial refinancing
- Transaction completion subject to market conditions and significant conditions
- Multiple near- and mid-term debt maturities requiring attention
Insights
Bausch Health's launch of a
This refinancing specifically targets the elimination of multiple note series maturing between 2025-2028, effectively extending the company's debt maturity profile and removing immediate refinancing pressures. While not reducing the overall debt burden, it provides critical breathing room for a company that has been working to improve its financial foundation.
The company's claim of reducing net debt by
The requirement that U.S. lenders must be qualified purchasers suggests the company is targeting sophisticated institutional investors, potentially indicating complex terms or specific regulatory considerations. Investors should monitor the final interest rates secured, as these will directly impact future cash flow available for additional debt reduction or business investment.
This refinancing package represents a classic maturity wall management strategy, effectively pushing out
The security structure is particularly noteworthy—securing the facilities with a first-priority lien on the borrower's assets including Bausch + Lomb equity demonstrates the company's willingness to pledge crown jewel assets to address refinancing needs. This collateralization approach may have been necessary to attract lenders given the company's leverage profile.
While extending maturities reduces immediate refinancing risk, investors should recognize this transaction doesn't fundamentally alter the company's overall debt burden. The true measure of success will depend on the interest rates secured in the current higher-rate environment compared to the rates on the debt being retired.
The transaction's timing aligns with the company's operational improvement trajectory, with seven quarters of growth providing a more favorable backdrop for negotiations with lenders. However, the extensive conditions and market contingencies mentioned suggest there remains execution risk until the transaction is completed.
For stakeholders, this refinancing addresses a critical near-term concern while providing management additional runway to continue operational improvements and potentially further reduce leverage through continued performance improvement.
Transaction is part of a broader refinancing initiative aimed at opportunistically accessing capital markets to address near- and mid-term maturities
LAVAL, QC / ACCESS Newswire / March 19, 2025 / Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) (the "Company" or "Bausch Health") today announced that it has launched the syndication of new senior secured credit facilities totaling at least
The new senior secured credit facilities are expected to consist of (i) a 5-year senior secured revolving credit facility in an amount of at least
JPMorgan Chase Bank, N.A. is the lead arranger for the New Senior Secured Credit Facilities.
"The launch of this syndication is the result of a thorough process led by our Board, management team, and independent advisors to evaluate several debt financing alternatives and is consistent with Bausch Health's previously stated objective to comprehensively improve our debt maturity profile. The transaction is part of a broader initiative aimed at opportunistically accessing capital markets to address our near- and mid-term maturities," said Bausch Health CEO, Thomas J. Appio. "The Company has a diverse, substantial portfolio of assets and, with seven consecutive quarters of top- and bottom-line growth, strong momentum to build on our success in 2025."
Commitment to Paying Down Debt
Bausch Health (excluding Bausch + Lomb) reduced net debt by nearly
Transaction Details
The New Senior Secured Credit Facilities will be (i) secured, subject to customary limitations, by a first priority lien on substantially all assets of the Borrower, including a pledge of its direct equity interest in Bausch + Lomb and (ii) guaranteed by the Company and subsidiaries of the Company that guarantee the Company's existing indebtedness and secured by the assets of the guarantors, subject to customary limitations, by a first-priority lien that will rank pari passu with the liens securing the Company's existing first lien secured indebtedness.
The Company intends to use the proceeds of the New Term Loan Facility, together with the proceeds of other additional secured indebtedness intended to be raised in connection with the New Senior Secured Credit Facilities, to repay in full and terminate the Company's existing credit agreement, and (i) to redeem all of its
These proposed refinancing transactions, including but not limited to the principal amount, interest rate and maturity of the New Senior Secured Credit Facilities and any concurrent financings, are subject to market conditions and to a number of significant conditions, and there can be no assurance that the Company will consummate any of these transactions on the anticipated terms or timing, or at all.
The Company was advised by Evercore, Proskauer, and Norton Rose Fulbright Canada.
U.S. lenders under the New Senior Secured Credit Facilities must be qualified purchasers within the meaning of Section 2(a)(51) of the Investment Company Act of 1940, as amended.
This press release is not an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of the securities in any state or other jurisdiction where such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
About Bausch Health
Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) is a global, diversified pharmaceutical company enriching lives through our relentless drive to deliver better health care outcomes. We develop, manufacture and market a range of products primarily in gastroenterology, hepatology, neurology, dermatology, dentistry, aesthetics, international pharmaceuticals and eye health, through our controlling interest in Bausch + Lomb Corporation. Our ambition is to be a globally integrated healthcare company, trusted and valued by patients, HCPs, employees and investors. For more information, visit www.bauschhealth.com and connect with us on LinkedIn.
Forward-Looking Statements About Bausch Health
This news release may contain forward-looking statements within the meaning of applicable securities laws, including the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may generally be identified by the use of the words "will," "anticipates," "hopes," "expects," "intends," "plans," "should," "could," "would," "may," "believes," "subject to" and variations or similar expressions. These statements are neither historical facts nor assurances of future performance, are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In particular, the Company can offer no assurance that the separation (including a potential sale of Bausch + Lomb) will occur on terms or timelines acceptable to the Company or at all, or any assurance as to our ability to market, negotiate or close the New Senior Secured Credit Facilities on favorable terms or at all, or whether the Company will be able to obtain any new secured revolving credit facility or other additional secured indebtedness, or as to the ultimate composition of any near-term financing activities. Actual results are subject to other risks and uncertainties that relate more broadly to Bausch Health's overall business, including those more fully described in Bausch Health's most recent annual and quarterly reports and detailed from time to time in Bausch Health's other filings with the U.S. Securities and Exchange Commission and the Canadian Securities Administrators, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. The Company undertakes no obligation to update any of these forward-looking statements to reflect events, information or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.
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SOURCE: Bausch Health Companies Inc.
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