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.
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.
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.
