Bausch Health Cos. Inc.'s Proposed $1.25 Billion Senior Unsecured Notes Rated 'B' (Recovery Rating: '5')

TORONTO (S&P Global Ratings) Dec. 17, 2019--S&P Global Ratings today assigned its 'B' issue-level rating and '5' recovery rating to Bausch Health Cos. Inc.'s proposed $1.25 billion senior unsecured notes, which it will issue in two tranches maturing in 2028 and 2030. The '5' recovery rating indicates our expectation for modest recovery (10%-30%; rounded estimate: 20%) in the event of a payment default. We expect the company to use the proceeds from these notes to pay the amounts owed under its recent U.S. securities litigation settlement agreement and related transaction fees and expenses. We anticipate that Bausch would use any remaining proceeds to add cash to its balance sheet for general corporate purposes. Bausch Health is a global pharmaceutical and

...Alternatively, its lenders could break up its diverse product families and sell them to strategic buyers. Simulated default assumptions - Simulated year of default: 2021 Simplified waterfall - EBITDA multiple: 7x - Net enterprise value (after administrative costs): $13.8 billion - Obligor/nonobligor split: 95%/5% - First-lien debt claims: $11.289 billion - --Recovery expectation: 90%-100% (rounded estimate: 95%) - Total value available to unsecured claims: $2.507 billion - Unsecured claims: $14.713 billion - --Recovery expectation: 10%-30% (rounded estimate: 20%) Notes: All debt amounts include six months of prepetition interest....

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