Valeant Pharma (VRX) Announces Lender Consent for Credit Facility Amendment

August 18, 2016 8:01 AM EDT

Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.

Valeant Pharmaceuticals International, Inc. (NYSE: VRX) 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."



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Corporate News, Hot Corp. News, Management Comments, Short Sales

Add Your Comment