May 2, 2012 / 9:18 PM / 6 years ago

Bausch and Lomb weighs increase of U.S. loan, raises pricing

NEW YORK, May 2 (LPC) - Bausch and Lomb revised pricing on its covenant-lite term loans and is said to be weighing an increase to the size of its US dollar-denominated term loan at the expense of the euro-denominated loan amid ongoing volatility in the European loan market, sources said.

“The European market continues to be unsettled so they will have to place more of the debt in U.S. investor hands,” said one investor currently looking at the loan.

Today, pricing on the US dollar-denominated loan was revised to 425 basis points over Libor with a 1 percent Libor floor and a discount of 99 cents on the dollar. The loan benefits from 101 soft call protection.

Calls to Bausch and Lomb WPRISB.UL were not returned by press time.

Initial price talk on the US term loan was set at 375-400 basis points over Libor with a 1 percent Libor floor and a discount of 99 cents on the dollar.

At the same time, pricing on the euro-denominated loan was revised to 475 basis points over Euribor with a 1 percent Euribor floor and a discount of 99 cents on the dollar. The loan also benefits from 101 soft call protection.

Initial price talk on the European loan was 400-425 basis points over Euribor with a 1 percent Euribor floor and a discount of 99 cents on the dollar.

Additionally, an originally planned $350 million covenant-lite US delayed-draw term loan B will not be syndicated at this time. Pricing on the loan was revised to 375 basis points over Libor with a 1 percent Libor floor, from 375-400 basis points over Libor.

The delayed-draw loan will now mature in three years instead of seven.

The loans are part of a $3.485 billion covenant-lite loan that will refinance the company’s existing debt and back the acquisition of ISTA Pharmaceuticals.

As initially outlined, the loan consists of a $2.035 billion covenant-lite US term loan B, a, a $600 million covenant-lite euro term loan B and a $500 million revolving credit facility.

Commitments to the loan were due today.

The corporate family rating is B2, while the facility rating is B1.

In late March, Bausch and Lomb said it had received financing commitments for a $350 million add-on term loan to back its acquisition of ISTA Pharmaceuticals.

Citi, JP Morgan, Credit Suisse, Goldman Sachs and Bank of America Merrill Lynch provided the financing commitments.

The company is buying ISTA Pharmaceuticals for $500 million.

In October 2007, Bausch and Lomb raised a $1.2 billion term loan backing its LBO by Warburg Pincus. The loan was priced at 325bp over Libor.

Reporting by Caleb Frazier and Smita Madhur

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