Bausch Health Companies Inc.: Redemption of Outstanding Secured Notes
On March 21, 2025, Bausch Health Companies Inc. (BHC) made an important announcement regarding the redemption of its outstanding secured notes. The Company, through its indirect wholly-owned subsidiary HoldCo, delivered conditional notices of redemption for several series of notes:
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BHC Notes:
Bausch Health announced the redemption of its 5.500% Senior Secured Notes due 2025, 9.000% Senior Notes due 2025, 5.750% Senior Secured Notes due 2027, and 6.125% Senior Secured Notes due 2027. These notes collectively will be referred to as the “BHC Notes” in this article.
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HoldCo Notes:
Additionally, HoldCo delivered a conditional notice of redemption for its 9.000% Senior Secured Notes due 2028.
The redemption of these notes comes with certain conditions. According to the press release, the redemption will be made on May 15, 2025, or the first business day immediately preceding that date, if the customary conditions for redemption have been met. These conditions include, but are not limited to, the absence of any event of default under the indenture governing the notes.
Impact on Individual Investors
For individual investors holding these securities, the redemption of the notes means that they will receive the principal amount of their investment back, along with any accrued and unpaid interest up to the redemption date. However, they will no longer receive any future interest payments on these securities.
Impact on the Global Market
The redemption of these notes by Bausch Health is not expected to have a significant impact on the global market. The company’s market capitalization is over $20 billion, and the total principal amount of the redeemed notes is approximately $2.2 billion. While this represents a notable amount, it is a relatively small portion of the overall debt market.
Conclusion
Bausch Health Companies Inc.’s decision to redeem its outstanding secured notes represents a strategic financial move for the company. The redemption will provide BHC with additional financial flexibility and reduce its debt burden. For individual investors holding these securities, the redemption means the return of their principal investment, along with any accrued interest. While the redemption may not have a significant impact on the global market, it is a noteworthy event in the financial world.
As always, investors are encouraged to consult with their financial advisors for any specific questions regarding their investments.
