Valeant Pharmaceuticals Intl 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.” (Original Source)
Shares of Valeant Pharmaceuticals Intl Inc (NYSE:VRX) are up over 5% to $31.55 in pre-market trading. VRX has a 1-year high of $245.82 and a 1-year low of $18.55. The stock’s 50-day moving average is $23.35 and its 200-day moving average is $38.51.
On the ratings front, VRX has been the subject of a number of recent research reports. In a report released yesterday, Morgan Stanley analyst David Risinger reiterated a Buy rating on VRX, with a price target of $42, which represents a potential upside of 40.0% from where the stock is currently trading. Separately, on August 15, Mizuho’s Irina Rivkind Koffler upgraded the stock to Hold and has a price target of $25.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, David Risinger and Irina Rivkind Koffler have a total average return of 1.3% and 24.7% respectively. Risinger has a success rate of 57.8% and is ranked #1767 out of 4033 analysts, while Koffler has a success rate of 61% and is ranked #14.
The street is mostly Neutral on VRX stock. Out of 17 analysts who cover the stock, 9 suggest a Hold rating , 6 suggest a Buy and 2 recommend to Sell the stock. The 12-month average price target assigned to the stock is $33.50, which implies an upside of 11.7% from current levels.
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, eye health, neurology, and branded generics. The company operates through two operating and reportable segments: (i) Developed Markets and (ii) Emerging Markets.