Bausch Health Prices $1.6 Billion New Notes to Refinance Debt


Bausch Health Companies Inc. (BHC) revealed the pricing of its new 4.875% senior secured notes due in 2028 worth $1.6 billion at 100% of the principal amount. Shares of the Quebec-based health care company have jumped 72.6% over the past year.

The proceeds, along with available cash on the balance sheet, will be utilized to purchase its outstanding 7.00% Senior Secured Notes due in 2024 and to pay for related expenses.

The new debt offering will be subject to various conditions. BHC will sell the notes only to qualified institutional investors, the company said in a press release. (See Bausch Health stock analysis on TipRanks)

On May 5, RBC Capital analyst Douglas Miehm decreased the price target on the stock to $41 (30.9% upside potential) from $42 and maintained a Buy rating.

Miehm said, “New segmented information suggests lower EBITDA/FCF at B+L than we estimated. Our analysis of the financials provided suggests EBITDA margins of ~25-28% for B+L SpinCo and ~52-55% for Bausch Pharma RemainCo over the past 3 years, prior to spin-off dis-synergies.”

Overall, the stock has a Moderate Buy consensus rating based on 4 Buys, 3 Holds, and 1 Sell. The average analyst price target of $36.25 implies 15.7% upside potential to current levels.

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