Bausch + Lomb exploring sale options
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Bausch Health is working with Jefferies Financial Group to explore refinancing some of its debt to aid a long-planned spinoff of its stake in the eye-care company Bausch + Lomb, according to people with knowledge of the situation.
The effort to push out maturities on some of the company’s debt is aimed at vanquishing roadblocks that have delayed the would-be spinoff for years, said the people, who asked not to be identified discussing private negotiations.
Various options are under consideration for how to disentangle the two companies, and plans are in the early stages. Separate from the refinancing option, Bausch + Lomb is exploring a sale of itself, which could draw interest from private equity buyers, according to a person familiar with that matter.
Bausch Health and Jefferies did not respond to requests for comment on the discussions.
Bausch + Lomb operates a contact lens manufacturing facility in Waterford where approximately 1,500 people are employed.
Complicating Bausch Health’s mission to monetise its 88% stake in Bausch + Lomb is a pact between certain of its lenders that allows them to operate as a united bloc in any engagement with the company, including discussions over matters like financing and asset sales.
Bausch Health would use new funds raised through Jefferies to repay some of its debt, the people said, potentially doing away with obstacles related to holders’ opposition to the spinoff, which some have said would constitute a “fraudulent transfer” of a valuable corporate asset out of reach of its creditors.