...May 24, 2021 NEW YORK (S&P Global Ratings) May 24, 2021--S&P Global Ratings today assigned its '##' issue-level and '1' recovery ratings to Bausch Health Cos. Inc.'s proposed $1.6 billion senior secured notes. The '1' recovery rating indicates our expectations for modest (90%-100%; rounded estimate: 95%) recovery in the event of a payment default. The company plans to use the proceeds from this offering and cash on hand to redeem its existing $1.6 billion 7% senior secured notes and to pay related fees and expenses. Our 'B+' issuer credit rating and negative outlook are unchanged, reflecting the company's recent announcement that the leverage target for Bausch Pharma (the remaining entity after the company's proposed spin of its eye-care business) has changed to ~6.5x-6.7x at the time of the proposed spin-off, roughly 1x higher than the previous target of mid-5x. Bausch Pharma is a weaker business without the eye-care contribution, in our view. The high product concentration and an unproven...
