BLCO Bausch and Lomb Corporation

By Robb M. Stewart

Bausch + Lomb is offering $1.4 billion in debt and is looking to secure an incremental term loan facility to help finance the planned acquisition of a dry-eye drug from Novartis.

The eye-care company said Monday a wholly owned subsidiary has launched an offering of new senior secured notes due 2028 to fund the proposed purchase of Xiidra, Novartis's non-steroid eye drop approved to treat the signs and symptoms of dry eye disease, for $1.75 billion in cash, plus possible milestone payments based on sales and pipeline commercialization.

Bausch + Lomb also is seeking to enter into the term loan facility that could in the form of an incremental amendment to its existing credit agreement or a separate credit agreement. The company said it expects to borrow $500 million of new term B loans under the facility.

The deal for Xiidra was first big move by Chief Executive Brent Saunders since he returned to the helm in March. Bausch + Lomb has said the acquisition, which it expects to close by the end of the year, will be immediately accretive.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

September 11, 2023 07:43 ET (11:43 GMT)

Bausch and Lomb (TSX:BLCO)
Historical Stock Chart
From Apr 2024 to May 2024

Bausch and Lomb (TSX:BLCO)
Historical Stock Chart
From May 2023 to May 2024