Bausch Health to redeem $602 million in senior notes, end receivables facility

NEW YORK - Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) announced Monday it will redeem approximately $602 million of its outstanding 9.25% Senior Notes due 2026, using cash on hand. This debt reduction represents about 3% of the company’s total debt load of $21.5 billion, according to InvestingPro data.

The company’s subsidiary, Bausch Health Americas, Inc., has issued an irrevocable notice of redemption for the notes, with the redemption date set for August 28, 2025.

Additionally, Bausch Health revealed that its subsidiary, Bausch Receivables Funding LP, plans to repay all outstanding amounts under its receivables financing facility and terminate the facility by October 27, 2025. The current outstanding principal amount under this facility is $300 million as of Monday.

The pharmaceutical company stated these actions align with its focus on optimizing its capital structure. InvestingPro analysis shows the company maintains a GREAT financial health score, with particularly strong metrics in profitability and growth potential.

Payment of the redemption price and surrender of the notes will be processed through the Depository Trust Company. The U.S. paying agent for the transaction is The Bank of New York Mellon.

Bausch Health Companies develops, manufactures and markets pharmaceutical products primarily in gastroenterology, hepatology, neurology, dermatology, dentistry, aesthetics, and eye health through its controlling interest in Bausch + Lomb Corporation.

The information in this article is based on a company press release statement.

In other recent news, Bausch Health Companies Inc. reported mixed results for the first quarter. While the company saw strong revenue and adjusted EBITDA in most segments, its Bausch + Lomb/International segment faced challenges, particularly in pharmaceuticals and the Latin American market. The Salix segment exceeded expectations by 3%, with its key product Xifaxan growing 8% year-over-year. Solta, another segment of Bausch Health, reported a 28% year-over-year growth, driven by market expansions in South Korea and China. Raymond James adjusted its outlook on Bausch Health, lowering the price target from $9.00 to $8.00 but maintained a Market Perform rating on the stock. In other developments, Bausch Health expanded its Board of Directors by appointing Michael Goettler and Sandra Leung. Additionally, Health Canada approved Bausch Health’s Thermage FLX, a device for non-invasive skin tightening, marking a significant milestone for the company’s aesthetic business unit, Solta Medical. These developments highlight the company’s ongoing efforts to strengthen its market position and product offerings.

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