Bausch Health Companies Inc. has opened an exchange offer that allows holders of its 4.875% and 11.00% senior secured notes due 2028 to swap their debt for up to $1.6 billion of new 10.00% senior secured notes due 2032 issued by its wholly‑owned subsidiary, 1261229 B.C. Ltd. The new notes carry a 10.00% coupon, higher than the 4.875% notes but comparable to the 11.00% notes, and extend the company’s debt maturity to 2032.
The exchange terms provide a $100 per $1,000 principal premium for notes tendered by December 8 2025, and the offer expires on December 23 2025. Holders of the 11.00% notes receive $920 per $1,000 principal, while holders of the 4.875% notes receive $787.50 per $1,000 principal. A transaction support agreement has been signed by holders representing roughly $1.545 billion, or 46%, of the outstanding senior secured notes, and the new 2032 notes will be treated as a single series with the $4.4 billion of 10.00% notes issued in April 2025, making them fungible.
Bausch Health’s debt‑management strategy has focused on extending maturities to reduce near‑term refinancing pressure and improve its leverage profile. The company’s total debt stood at about $21 billion as of the third quarter of 2025, and it has already completed a $900 million debt reduction in July 2025 and a $4.4 billion senior secured notes offering in March 2025. By moving a portion of the 2028 debt to 2032, the company gains additional years of financial flexibility while maintaining a high coupon that reflects current market conditions for longer‑dated debt.
Revenue growth has been a key driver of Bausch Health’s recent deleveraging. Full‑year 2024 consolidated revenue rose 10% to $9.63 billion, and the company has posted seven consecutive quarters of year‑over‑year growth in both revenue and adjusted EBITDA. The exchange aligns with the company’s broader plan to fund growth initiatives in its core segments—Salix and Solta Medical—while keeping debt levels manageable amid a high debt‑to‑equity ratio of 59.1% and an interest coverage ratio of 1.4.
The exchange is part of Bausch Health’s ongoing effort to balance a high leverage ratio with the need to invest in pipeline development and market expansion. By extending maturities, the company positions itself to refinance at potentially more favorable terms in the future and to allocate capital toward growth opportunities without the immediate pressure of near‑term debt maturities.
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