Bausch Health prints 5-year secured bonds at par to yield 6.125%; terms

Bausch Health Cos. Inc.'s $1 billion offering of 6.125% five-year secured bonds have priced at the tight end of guidance, according to market sources. The deal was marketed via a Barclays-led bookrunner group.

The bonds are accompanied by a $2.5 billion term loan, and together the proceeds will be used to repay the company's existing term loan B in full, repay its 6.125% notes due 2025 and support a partial redemption of its 9% senior notes due 2025.

The refinancing will be effective only upon the IPO of Bausch & Lomb and its related debt financing. The eye care business on Jan. 13 filed a Form S-1 in which it disclosed plans to issue a new term loan in connection with its separation from Bausch Health. Bausch & Lomb is expected to list on the New York Stock Exchange and the Toronto Stock Exchange under the symbol BLCO. If the Bausch + Lomb IPO has not occurred on or prior to Aug. 15, 2022, or Bausch notifies the trustee in writing that it will not pursue the transaction, the notes will be redeemed in whole at a special mandatory redemption price equal to the issue price of the notes, plus accrued and unpaid interest thereon, if any, from the issue date to, but excluding, the special mandatory redemption date.

Bausch Health develops, manufactures and markets a range of pharmaceutical, medical device and over-the-counter products.

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