Valeant Pharma Gets Lender Consent To Amend Credit Facility - Quick Facts

(RTTNews) - Valeant Pharmaceuticals International, Inc. (VRX, VRX.TO) said it has obtained the requisite lender approval for an amendment to its credit facility. The company expects to close the amendment next week, subject to customary closing conditions.

The Canadian drugmaker noted that the amendment will reduce the interest coverage maintenance covenant to 2 times, providing the company with additional headroom.

The amendment will also provide additional flexibility to the company to sell assets, permit the issuance of secured notes with shorter maturities to repay term loans, and permit the incurrence of other debt to repay term loans.

Further, Valeant has agreed to increase each of the applicable interest rate margins on its credit facility by 0.50 percent and to pay an amendment fee equal to 0.25 percent of the aggregate principal amount of each consenting lender's outstanding loans and commitments under the credit facility.

Joseph Papa, chairman and chief executive officer of Valeant said, "The amendment provides us with additional flexibility and allows us to focus on executing our strategic plan, developing our pipeline and improving patients' lives."