A group of banks led by JPMorgan Chase & Co. is selling a $1.9 billion bond-and-loan deal to support Bausch + Lomb Corp.’s acquisition of a portfolio of eye medicines from Novartis AG.
(Bloomberg) — A group of banks led by JPMorgan Chase & Co. is selling a $1.9 billion bond-and-loan deal to support Bausch + Lomb Corp.’s acquisition of a portfolio of eye medicines from Novartis AG.
The lenders are offering a $500 million five-year leveraged loan and $1.4 billion in bonds, according to people familiar with the matter. The loan component is being discussed at 400 basis points over the Secured Overnight Financing Rate and a discounted price of 98 cents to 98.5 cents on the dollar. The proposed senior secured bond offering is being discussed with a coupon in the high-8% range.
The proceeds will finance the purchase of Xiidra, a non-steroid eye drop that treats symptoms of dry eye disease, as well as other ophthalmology assets from Novartis, the people said, asking not to be named discussing a private transaction.
JPMorgan declined to comment. Bausch + Lomb didn’t respond to requests for comment.
Read More: Novartis Sells Eye Drugs to Bausch for Up to $2.5 Billion
The deal is one of a number of notable acquisition financings to hit markets after the early September Labor Day holiday in the US, arriving as part of a $15 billion-plus wave. The forward calendar is relatively light compared to 2019, which had a roughly $60 billion pipeline in August, according to PitchBook LCD. But it’s a bright spot in a market that had seen little buyout financing so far this year.
Read More: Wall Street Preps for $15 Billion Spree of Risky Buyout Debt
A lender call for the loan portion is scheduled for 10 a.m. New York time on Tuesday, Sept. 12 followed by an investor call for the bond sale at 11:15 a.m. Commitments for the loan are due Sept. 14.
–With assistance from Gowri Gurumurthy.
(Corrects pricing for loan component in the second paragraph to say it is being discussed at 400 bps over a key benchmark rate. Updates paragraph four to note that JPMorgan declined to comment.)
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