Bausch + Lomb (NYSE:BLCO) announced that its subsidiaries closed an upsized offering of $790.6 million (€675 million) in senior notes.
The upsized offering included senior secured floating rate notes due 2031. In addition, the company completed a partial refinancing of its credit agreement. In connection with the refinancing, it entered into a third amendment to its existing credit agreement. This provides for a $2.325 billion term B loan facility maturing in 2031 and an $800 million revolving credit facility maturing in 2030.
Notes in the offering bear interest at the rate of three-month EURIBOR (with a 0% floor) plus 3.875% per year. They reset quarterly with a maturation date set for Jan. 15, 2031. Investors purchased the notes at a price of 99.5% of the principal amount thereof.
The Vaughan, Ontario-based eye care company’s new term B loans have an amortization rate of 1% per annum, with the first installment payable on Sept. 30, 2025.
Bausch + Lomb guarantees the notes and each of its subsidiaries serve as guarantors under the credit agreement. The company plans to use net proceeds to repay in full the outstanding borrowings under its existing revolving credit facility. It also intends to refinance in full the outstanding term A loans due 2027 and term B loans due 2027 while also paying related fees and expenses.
