Bausch Health To Reduce Debt By $100 Million Using Cash Generated From Operations

Rhea-AI Summary

Bausch Health Companies Inc. (NYSE/TSX: BHC) announced a $100 million debt reduction through the redemption of senior secured notes, utilizing cash generated from operations. This move is part of the company's strategy to recover from the COVID-19 pandemic and enhance shareholder value, particularly in view of a planned spinoff of Bausch + Lomb. The redemption of the 7.00% Senior Secured Notes due 2024 is scheduled for March 24, 2021. Bausch Health aims to strengthen its financial position by reducing leverage.

Positive

• Reduction of debt by $100 million to strengthen financial position.
• Utilization of cash generated from operations for debt repayment.
• Planned spinoff of Bausch + Lomb may unlock additional shareholder value.

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• None.

LAVAL, QC, Feb. 22, 2021 /PRNewswire/ -- Bausch Health Companies Inc. (NYSE/TSX: BHC) ("Bausch Health" or the "Company") today announced it will reduce debt by $100 million through the redemption of outstanding senior secured notes, using cash generated from operations.

"As Bausch Health continues its recovery from the effects of the COVID-19 pandemic, we also remain focused on repaying our debt by generating cash through strong business execution and efficient management of our operations," said Joseph C. Papa, chairman and CEO, Bausch Health. "This redemption will help reduce our leverage and bring us a step closer to expediting a path forward that unlocks shareholder value, including the spinoff of Bausch + Lomb."

Bausch Health will redeem $100 million aggregate principal amount of its outstanding 7.00% Senior Secured Notes due 2024, CUSIP Nos. 91911K AK8, C94143 AK7 (the "Notes") on Mar. 24, 2021. The Company will issue today an irrevocable notice of redemption for the Notes and a copy will be issued to the record holders of such Notes. Nothing contained herein shall constitute a notice of redemption of the Notes. Payment of the redemption price and surrender of the Notes for redemption will be made through the facilities of the Depository Trust Company in accordance with the applicable procedures of the Depository Trust Company. The name and address of the paying agent are as follows: The Bank of New York Mellon; 111 Sanders Creek Parkway, East Syracuse, N.Y. 13057; Attn: Redemption Unit; Tel: 800-254-2826.

About Bausch Health
Bausch Health Companies Inc. (NYSE/TSX: BHC) is a global company whose mission is to improve people's lives with our health care products. We develop, manufacture and market a range of pharmaceutical, medical device and over-the-counter products, primarily in the therapeutic areas of eye health, gastroenterology and dermatology. We are delivering on our commitments as we build an innovative company dedicated to advancing global health. More information can be found at www.bauschhealth.com.

Caution Regarding Forward-Looking Information and "Safe Harbor" Statement
This news release may contain forward-looking statements, including, but not limited to, the redemption of the Notes. Forward-looking statements may generally be identified by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," "target," or "continue" and variations or similar expressions. These statements 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. These risks and uncertainties include, but are not limited to, risks and uncertainties discussed in the Company's most recent annual and quarterly reports and detailed from time to time in the Company's other filings with the Securities and Exchange Commission and the Canadian Securities Administrators, which factors are incorporated herein by reference. They also include, but are not limited to, risks and uncertainties caused by or relating to the evolving COVID-19 pandemic, and the fear of that pandemic and its potential effects, the severity, duration and future impact of which are highly uncertain and cannot be predicted, and which may have a material adverse impact on the Company, including but not limited to its supply chain, third-party suppliers, project development timelines, employee base, liquidity, stock price, financial condition and costs (which may increase) and revenue and margins (both of which may decrease). 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. Bausch Health undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.

Investor Contact:	Media Contact:
Arthur Shannon	Lainie Keller
arthur.shannon@bauschhealth.com	lainie.keller@bauschhealth.com
(514) 856-3855	(908) 927-1198
(877) 281-6642 (toll free)

 

 

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SOURCE Bausch Health Companies Inc.

FAQ

What is Bausch Health's plan for debt reduction for 2021?

Bausch Health plans to reduce debt by $100 million through the redemption of senior secured notes.

When will Bausch Health redeem its senior secured notes?

Bausch Health will redeem the notes on March 24, 2021.

What amount of senior secured notes is Bausch Health redeeming?

Bausch Health is redeeming $100 million of its senior secured notes.

How is Bausch Health funding its debt reduction?

The company is using cash generated from operations for the debt reduction.

What potential benefit does the spinoff of Bausch + Lomb have for shareholders?

The spinoff may unlock additional shareholder value.