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Valeant Prices $1B High Yield Bond Offering to Finance Tender Offers

Valeant Pharmaceuticals (NYSE: VRX) today priced a $1 billion offering of eight-year secured notes at the tight end of talk. Proceeds from the Citi-led deal will be used to finance tender offers for a maximum of $1 billion. The company is offering to purchase the $690 million of 7% notes due 2020, the $2.25 billion of 6.375% notes due 2020, and a maximum of $100 million of the $2 billion of 5.375% notes due 2020. In March, the company was in market to place $1.25 billion of 6.5% secured notes due 2022, and $2.25 billion of 7% secured notes due 2024. Both maturities priced at par. Valeant Pharmaceuticals is a Laval, Quebec–based pharmaceutical company. Terms:

Issuer Valeant Pharmaceuticals
Ratings BB-/Ba3
Amount $1 billion
Issue Senior secured (144A/Reg S for life)
Coupon 5.5%
Price 100
Yield 5.5%
Spread T+316
Maturity Nov. 1, 2025
Call non-call three (first call @ par +50% coupon)
Trade Oct. 2, 2017
Settle Oct. 17, 2017 (T+10)
Bookrunners C/Barc/DB/DNB/GS/JPM/RBC
Price talk 5.625% area
Notes Up to 40% equity claw until Nov. 1, 2020; change of control put @ 101; make-whole @ T+50

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