Bausch + Lomb has secured a $2.802 billion tranche of new term B loans to refinance all of its existing term B debt that matures in 2028 and 2031. The new facility will replace the company’s Third Amendment Term Loans and First Incremental Term Loans, extending the maturity of the 2028 debt to January 15, 2031 and keeping the 2031 maturity unchanged. The refinancing will consolidate the two debt streams into a single, longer‑dated obligation, simplifying the company’s debt profile and reducing near‑term refinancing risk.
The new loans carry a 3.75% margin on term SOFR for the 2031 debt and a 2.75% margin on the 2028 debt, cutting annual interest expense by 0.50% and 0.25% respectively. On a $2.8 billion basis, the cost savings translate to roughly $14 million and $7 million per year, respectively. By lowering the overall debt‑service burden, the company preserves cash flow that can be deployed toward research and development, capital expenditures, or shareholder returns.
Bausch + Lomb’s refinancing fits into a broader debt‑management strategy that has been a focus of its parent, Bausch Health, which carries a substantial debt load. As of September 2025, Bausch + Lomb’s total debt stood at $4.95 billion, up from $4.83 billion at the end of March 2025. The transaction supports the company’s Vision 27 plan, which targets operational efficiency and margin expansion through 2028, by ensuring an investment‑grade capital structure and ample liquidity to fund growth initiatives.
Brent Saunders, Chairman and CEO, emphasized that the refinancing is part of the company’s commitment to long‑term, profitable growth. “By extending maturities and reducing borrowing costs, we are strengthening our balance sheet and freeing up capital to invest in our core eye‑health businesses,” Saunders said. The move also signals confidence in the company’s credit profile and its ability to maintain a strong liquidity position amid a competitive market for capital.
The refinancing is expected to close in the first quarter of 2026. Once completed, the company will have a single, longer‑dated term B loan that reduces interest expense, extends maturities, and improves liquidity, positioning Bausch + Lomb to pursue strategic opportunities while maintaining a robust capital structure.
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