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Valeant Pharmaceuticals (B/B1) high yield bonds price to yield 5.5%

Valeant Pharmaceuticals this afternoon completed its $1 billion offering of senior notes via Barclays, RBC, Deutsche Bank, DNB, HSBC, MUFG, and Morgan Stanley. Terms were finalized at the tight end of talk, and heavy demand allowed for a revision of the first call premium to a more-issuer-friendly par plus 50% coupon, from par plus 75% coupon at launch. Valeant is seeking proceeds to redeem its outstanding 6.875% senior notes due 2018, to repay all or a portion of the amounts drawn under the revolving credit facility, and for general corporate purposes, including acquisitions, according to sources. The 6.875% notes are callable on Feb. 12 at 103.44, according to S&P Capital IQ. Note the first call at par plus 50%. Terms:

Issuer Valeant Pharmaceuticals
Ratings B/B1
Amount $1 billion
Issue senior (144-life)
Coupon 5.5%
Price 100
Yield 5.5%
Spread T+386
Maturity March, 1, 2023
Call nc-3 @par+50% coupon
Trade Jan. 15, 2015
Settle Jan. 30, 2015 (T+10)
Bookrunners Barc/RBC/DB/DNB/HSBC/MUFG/MS
Co-Managers Citi/JPM/STRH
Price talk 5.5-5.625%
Notes First call at par +50%

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