Valeant obtains lender approval for credit facility amendment

Valeant Pharmaceuticals International recently acquired the necessary lender approval for a credit facility amendment.

Valeant reported the amendment, which was subject to customary closing conditions, was expected to close by late August.

"We are pleased to have the support of our lenders and appreciate their confidence in the company's future," Valeant Chairman and CEO Joseph C. Papa said. "The amendment provides us with additional flexibility and allows us to focus on executing our strategic plan, developing our pipeline and improving patients' lives."

According to Valeant, 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 and permit the incurrence of other debt to repay term loans."

Valeant has also agreed to expand each of its applicable credit facility interest rate margins by 0.50 percent as well as pay an amendment fee of the combined principal amount of every compliant lender’s outstanding loans and commitments covered by the credit facility equal to 0.25 percent.

Valeant Pharmaceuticals develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of dermatology, gastrointestinal disorders, eye health, neurology and branded generics.