Bausch Health to Reduce Debt by Approximately $900 Million Using Cash On Hand

Rhea-AI Summary

Bausch Health (NYSE:BHC) has announced significant debt reduction initiatives totaling approximately $900 million. The company will redeem $602 million of its 9.25% Senior Notes due 2026 using cash on hand, with the redemption date set for August 28, 2025.

Additionally, Bausch's subsidiary plans to repay $300 million outstanding under its Receivables Facility, with termination scheduled for October 27, 2025. These strategic moves align with the company's objective to optimize its capital structure.

Positive

• Significant debt reduction of approximately $900 million using available cash
• Strategic optimization of capital structure through debt repayment
• Elimination of high-interest 9.25% Senior Notes, potentially reducing interest expenses

Negative

• Substantial reduction in cash reserves due to debt repayment
• Potential decrease in financial flexibility with reduced cash on hand

Insights

Corporate Finance Analyst

Bausch Health's $900M debt reduction strengthens balance sheet and reduces interest burden, positive for financial health.

Bausch Health's announcement to reduce debt by approximately $900 million using existing cash represents a significant deleveraging initiative that will strengthen the company's financial position. The company is redeeming $602 million of its 9.25% Senior Notes due 2026 and repaying $300 million outstanding under its Receivables Facility.

This debt reduction carries several important financial implications. First, by using cash on hand rather than refinancing, Bausch is demonstrating confidence in its liquidity position. Second, eliminating the 9.25% Senior Notes will generate meaningful interest expense savings, potentially exceeding $55 million annually on those notes alone. This will improve cash flow available for operations or further debt reduction.

The company specifically mentioned its "focus on optimizing its capital structure" which suggests this move is part of a broader financial strategy. By reducing higher-interest debt, Bausch is likely working to improve its debt profile and decrease its weighted average cost of capital. The timing is also strategic, coming before the 2026 maturity and potentially ahead of any refinancing challenges that might emerge.

For a pharmaceutical company like Bausch Health that has historically carried substantial debt, this deleveraging represents a significant step toward improving financial flexibility and reducing financial risk. This should strengthen the company's position for future growth initiatives while potentially improving how credit rating agencies and investors view the company's financial health.

LAVAL, QC / ACCESS Newswire / July 28, 2025 / Bausch Health Companies Inc. (NYSE: BHC)(TSX: BHC) ("Bausch Health" or the "Company") today announced that its subsidiary, Bausch Health Americas, Inc., has issued an irrevocable notice of redemption pursuant to which it will redeem approximately $602 million of aggregate principal amount of its outstanding 9.25% Senior Notes due 2026, CUSIP Nos. 91911XAV6 and U9098VAN2 (the "Notes"), using cash on hand. The redemption date is August 28, 2025. The notice of redemption has been issued to the record holders of such Notes. Nothing contained herein shall constitute a notice of redemption of the Notes. Payment of the redemption price and surrender of the Notes for redemption will be made through the facilities of the Depository Trust Company in accordance with the applicable procedures of the Depository Trust Company. The name and address of the U.S. paying agent are as follows: The Bank of New York Mellon, 240 Greenwich Street, Floor 7E, New York, New York 10286; Attn: Corporate Trust Administration. In connection with the redemption, the indenture pursuant to which the Notes were issued will be terminated.

In addition, the Company today announced that its subsidiary, Bausch Receivables Funding LP, has given notice to the administrative agent under its Credit and Security Agreement, dated as of June 30, 2023, as amended, of its intention to repay all outstanding amounts in respect of the receivables financing facility thereunder (the "Receivables Facility"), and to terminate the Receivables Facility and the related agreements as of October 27, 2025. As of July 28, 2025, the aggregate principal amount outstanding under the Receivables Facility was $300 million.

These measures are consistent with the Company's focus on optimizing its capital structure.

About Bausch Health

Bausch Health Companies Inc. (NYSE: BHC)(TSX: BHC), is a global, diversified pharmaceutical company enriching lives through our relentless drive to deliver better health care outcomes. We develop, manufacture and market a range of products primarily in gastroenterology, hepatology, neurology, dermatology, dentistry, aesthetics, international pharmaceuticals and eye health, through our controlling interest in Bausch + Lomb Corporation. Our ambition is to be a globally integrated healthcare company, trusted and valued by patients, HCPs, employees and investors. For more information about Bausch Health, visit www.bauschhealth.com and connect with us on LinkedIn.

Forward-looking Statements

This news release may contain forward-looking statements within the meaning of applicable securities laws, including the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may generally be identified by the use of the words "will," "anticipates," "hopes," "expects," "intends," "plans," "should," "could," "would," "may," "believes," "subject to" and variations or similar expressions. These statements are neither historical facts nor assurances of future performance, are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Actual results are subject to other risks and uncertainties that relate more broadly to Bausch Health's overall business, including those more fully described in Bausch Health's most recent annual and quarterly reports and detailed from time to time in Bausch Health's other filings with the U.S. Securities and Exchange Commission and the Canadian Securities Administrators, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. The Company undertakes no obligation to update any of these forward-looking statements to reflect events, information or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.

Investor Contact:	Media Contact:
Garen Sarafian	Katie Savastano
ir@bauschhealth.com	corporate.communications@bauschhealth.com
(877) 281-6642 (toll free)	(908) 569-3692

SOURCE: Bausch Health Companies Inc.

View the original press release on ACCESS Newswire

FAQ

How much debt is Bausch Health (BHC) planning to reduce in 2025?

Bausch Health plans to reduce its debt by approximately $900 million using cash on hand, consisting of $602 million in Senior Notes and $300 million from its Receivables Facility.

When will BHC complete its Senior Notes redemption?

Bausch Health will redeem approximately $602 million of its 9.25% Senior Notes on August 28, 2025.

What is the interest rate on the BHC Senior Notes being redeemed?

The Senior Notes being redeemed carry an interest rate of 9.25% and were due in 2026.

When will Bausch Health terminate its Receivables Facility?

Bausch Health plans to terminate its Receivables Facility on October 27, 2025, repaying the outstanding amount of $300 million.

What is the purpose of BHC's debt reduction initiative?

The debt reduction initiative is part of Bausch Health's strategy to optimize its capital structure by reducing outstanding debt using available cash.