JPMorgan Talks Price on Valeant TL
Proceeds could also be used for future acquisitions
February 1, 2012
JPMorgan has established price talk on a $500 million term loan B for Valeant Pharmaceuticals.
The loan, which is being offered as a new tranche under Valeant's existing, senior secured term facility, is talked at a spread of Libor plus 300 bps and a price of 99 cents on the dollar.
Lender commitments are due Feb. 9.
In a statement issued Tuesday, Valeant said loan roceeds will be used to repay an existing, $275 million revolver and for general corporate purposes. Although the Canadian company has withdrawn a bid to acquire ISTA Pharmaceuticals, the loan proceeds could also be used for future acquisitions.
As of Sept. 30, Valeant's senior secured term loan facility was $590 million, according to a regulatory filing.
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