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Valeant prices public offering at $85 a share; aims to raise $2B for acquisition

LAVAL, Que. – Valeant Pharmaceuticals International, Inc. (TSX:VRX) has priced its previously announced public offering of shares aimed at helping finance the US$8.7-billion acquisition of eye care company Bausch + Lomb.

Valeant says it will issue slightly more than 23.5 million common shares at a price of $85 per share, for aggregate gross proceeds of some $2 billion.

Goldman, Sachs & Co. will act as sole manager of the offering outside of Canada and Goldman Sachs Canada Inc. will act as sole manager in Canada, Valeant said after markets closed Tuesday.

Closing of the offering is expected to occur on or about June 24.

The company has also granted to underwriters an option, exercisable for a period of 30 days following the date of the final prospectus supplement, to purchase additional common shares equal to up to 15 per cent of the common shares initially sold.

The company intends to use the net proceeds from the offering, together with debt financing, to fund the purchase and repay or retire Bausch + Lomb’s outstanding debt.

If the deal were not to close for any reason, the proceeds will be used for general corporate purposes, which may include providing working capital, funding capital expenditures or for making one or more future acquisitions, Valeant said.

The company is paying US$4.5 billion to existing Bausch + Lomb shareholders and assuming US$4.2 billion of new debt in what is Valeant’s largest transaction to date.