By Robb M. Stewart

Bausch Health's shares advanced after the pharmaceutical company launched a big debt-refinancing effort, with plans to offer bonds and arrange new credit facilities so it can repay an existing credit agreement and redeem notes with maturities ranging from 2025 to 2028.

In afternoon trading, the shares were 2.6% higher, at 10.28 Canadian dollars (US$7.19), outpacing a 1% rise in the Toronto Stock Exchange's S&P/TSX Composite Index. The stock is down 12% so far this year and just over 20% lower over the last 12 months.

The Canadian pharmaceutical company said Wednesday it launched an offering of US$4 billion worth of new senior secured notes due 2032 though an indirect subsidiary.

It said it also launched new senior secured credit facilities that it expects will include a five-year senior secured revolving credit facility in an amount of at least US$400 million and a US$3.4 billion 5.5-year senior secured term loan B facility.

Both the offering and the credit facilities are subject to market and other conditions, it said.

The moves come after Bausch last week hired J.P. Morgan to help with financing. The company last month said it continued to work on a number of liability management alternatives, including raise new debt financing, after talks to sell its majority-owned Bausch + Lomb eyecare subsidiary failed to result in a deal.

The notes being offered will be secured by a first priority lien on substantially all Bausch's assets, including a pledge of its direct equity interest in Bausch + Lomb, the company said.

Bausch said it plans to use the proceeds from the offering plus borrowings under the loan facility to repay in full and terminate its existing credit agreement, redeem all 5.5% senior secured notes due 2025, 9% senior notes due 2025, 6.125% senior secured notes due 2027, 5.750% senior secured notes due 2027 and its indirect subsidiary's 9% senior secured notes due 2028.

Bausch reduced its net debt by nearly US$1 billion in 2024. It said it remains committed to optimizing its capital structure, strategically reducing debt leverage and extending maturities to fortify its financial position.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

March 19, 2025 14:04 ET (18:04 GMT)

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