Valeant Offers Premium on Debt Offering

CBJ – Valeant Pharmaceuticals is looking to pull together about $15 billion in financing in order to purchase Salix Pharmaceuticals. The deal would provide loan investors a premium to back what would be the drugmaker’s biggest acquisition in its history.

As part of the financial agreement, Valeant would pay lenders interest at 3.5 percentage points more than the London interbank offered rate for a $4.55 billion term loan.

Valeant also plans to sell more than $9 billion in junk bonds and raise an additional loan of $1 billion to finance the $10 billion buyout of Salix.