Valeant Pharmaceuticals International, Inc. announced that it has obtained the requisite lender approval for an amendment to its credit facility. The company expects to close the amendment next week, subject to customary closing conditions. The amendment will:
- reduce the interest coverage maintenance covenant to 2.0x, providing additional headroom
- provide additional flexibility to sell assets
- permit the issuance of secured notes with shorter maturities to repay term loans
- permit the incurrence of other debt to repay term loans
The company has also agreed to increase each of the applicable interest rate margins on its credit facility by 0.50% and to pay an amendment fee equal to 0.25% of the aggregate principal amount of each consenting lender's outstanding loans and commitments under the credit facility.
"We are pleased to have the support of our lenders and appreciate their confidence in the Company's future," said Joseph C. Papa, chairman and chief executive officer of Valeant. "The amendment provides us with additional flexibility and allows us to focus on executing our strategic plan, developing our pipeline and improving patients' lives."
Valeant Pharmaceuticals International, Inc. is a multinational specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of dermatology, gastrointestinal disorders, eye health, neurology and branded generics.