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Bausch + Lomb Seeks Financing for Acquisition

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Andrew R. Michaud

• September 11, 2023

Bausch + Lomb, a leading eye-care company, is seeking to secure funding for its planned acquisition of a dry-eye drug from Novartis. The company has announced an offering of new senior secured notes and is also looking to enter into a term loan facility.

Acquisition Details

Bausch + Lomb's wholly owned subsidiary has launched an offering of new senior secured notes due 2028 to finance the proposed purchase of Xiidra, a non-steroid eye drop approved to treat dry eye disease. The acquisition is valued at $1.75 billion in cash, with possible milestone payments based on sales and pipeline commercialization.

Term Loan Facility

In addition to the notes offering, Bausch + Lomb is seeking to establish a term loan facility. This facility could be in the form of an incremental amendment to its existing credit agreement or a separate credit agreement. The company plans to borrow $500 million of new term B loans under this facility.

Strategic Move

The acquisition of Xiidra marks a significant strategic move by Chief Executive Brent Saunders, who recently returned to the helm of Bausch + Lomb. The company expects the deal to be immediately accretive and aims to finalize it by the end of the year.

Sources: Wall Street Journal