Bausch + Lomb Finds Finance for Novartis Asset Purchase

Before the Xiidra transaction ends, Bausch + Lomb has found two options to improve the company’s balance sheet.

One is a $1.4 billion issue of new senior notes (bonds) that mature in 2028. The second request is for Bausch + Lomb to sign an incremental term loan agreement that may allow them to take out $500 million.

This combined funding is sufficient to finance the purchase of Xiidra along with the additional Novartis assets, to cover associated fees and costs, and to leave some cash available for general business uses, such as the redemption of outstanding debt. This summer, Bausch + Lomb owed $2.6 billion on its long-term debt.

The transaction, in the opinion of analysts, will strengthen Bausch + Lomb’s position in the ophthalmic pharmaceutical industry.

They said that “aging demographics, improved income demographics in emerging markets, increasing digital screen times and the ongoing increase in the incidence of diabetes will likely drive low- to mid-single-digit growth in the demand for eye health products and services during the intermediate term.”

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