Valeant Pharma Gets Lender Approval For Amendment To Its Credit Facility

(RTTNews) - Valeant Pharmaceuticals International, Inc. (VRX, VRX.TO) Thursday 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 company said it plans amendments to reduce the interest coverage maintenance covenant to 2.0x, providing additional headroom additional flexibility to sell assets permit the issuance of secured notes with shorter maturities to repay term loans permit the incurrence of other debt to repay term loans.

The Company has also 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."