Bausch + Lomb prices €675 million in senior secured notes

VAUGHAN, Ontario - Bausch + Lomb Corporation (NYSE/TSX: BLCO), a $4.09 billion market cap eye health company, announced Wednesday it has priced €675 million in senior secured floating rate notes due 2031, increasing the offering size from the previously announced €600 million. The notes will be sold to investors at 99.500% of their principal amount.

The eye health company is also seeking to partially refinance its credit agreement with a $2.325 billion new term B loan facility and an $800 million revolving credit facility. The term loan facility size was increased from the previously announced $2.2 billion and is expected to accrue interest at Term SOFR plus 4.25% per annum. According to InvestingPro data, BLCO operates with a significant debt burden, though maintains a current ratio of 1.56x, indicating adequate short-term liquidity.

Bausch + Lomb intends to use proceeds from both the notes offering and the new term loan facility to repay outstanding borrowings under its existing revolving credit facility, refinance its term A and B loans due 2027, and pay related expenses.

The notes will be guaranteed by the company and its subsidiaries that are guarantors under the company’s credit agreement. They will be secured by first priority liens on the same assets securing the company’s credit agreement obligations and outstanding senior secured notes.

The notes offering is expected to close on June 26, 2025, and is not contingent upon closing of the new loan facilities, which are also expected to close the same day.

The notes are being offered in the United States only to qualified institutional buyers under Rule 144A and outside the United States to non-U.S. persons under Regulation S. They will not be registered under the Securities Act of 1933 or qualified for public sale in Canada.

Based in Vaughan, Ontario, with corporate offices in Bridgewater, New Jersey, Bausch + Lomb manufactures and markets eye care products in approximately 100 countries. The company generated $4.83 billion in revenue over the last twelve months, with a robust gross profit margin of 60%. InvestingPro analysis reveals additional insights about BLCO’s financial health and growth prospects in its comprehensive Pro Research Report, available alongside 1,400+ other detailed company analyses.

This information is based on a press release statement from the company.

In other recent news, Bausch & Lomb Corporation reported key developments affecting its business and investor outlook. Barclays analysts have revised their financial projections for the company, lowering the stock price target to $16 from $19 while maintaining an Equalweight rating. This adjustment is due to a decrease in the company’s projected next twelve months EBITDA to $996 million and updates to sales and earnings projections, primarily impacted by the Inflation Reduction Act and changes affecting Xiidra in 2025. Additionally, Bausch & Lomb has launched two new eye care products, Blink Nourish and Blink Boost, in the U.S., expanding their Blink range of eye drops. These products are available at major retailers and are designed to offer long-lasting relief for individuals with sensitive eyes.

At the company’s Annual Meeting of Shareholders, all nominated directors were elected to serve until the 2026 Annual Meeting, and PricewaterhouseCoopers LLP was appointed as the auditor. In other product news, the company introduced Zenlens CHROMA HOA scleral contact lenses in the U.S., designed to correct higher-order aberrations and improve visual clarity. The launch is part of Bausch & Lomb’s efforts to expand its portfolio, which includes approximately 400 products. These developments reflect the company’s ongoing initiatives to enhance its offerings and maintain a strong presence in the eye health market.

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