Bausch Health Completes $1.6 Billion Debt Restructuring
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Yahoo Finance
- Debt Restructuring Completed: Bausch Health recently completed a $1.6 billion fixed-income exchange, issuing 10.00% Senior Secured Notes to reshape its debt profile, thereby improving financial resilience and reducing long-term obligations.
- Financial Adjustment: This debt exchange modifies the timing and cost of obligations, and while it does not materially change the short-term catalyst around Xifaxan pricing, it helps alleviate pressures from high leverage.
- Profitability Outlook: Bausch Health projects $10.1 billion in revenue and $264.4 million in earnings by 2028, with a slight annual revenue decline of 0.9%, necessitating an earnings increase of approximately $166 million to maintain financial health.
- Investor Focus: Investors should be aware of how this higher-cost, long-dated debt could amplify future earnings pressure, particularly amid uncertainties in drug pricing and regulatory outcomes, which will impact the company's investment appeal.
BHC
$7.18+Infinity%1D
Analyst Views on BHC
Wall Street analysts forecast BHC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BHC is 8.50 USD with a low forecast of 7.00 USD and a high forecast of 10.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
0 Buy
3 Hold
0 Sell
Hold
Current: 7.320
Low
7.00
Averages
8.50
High
10.00
Current: 7.320
Low
7.00
Averages
8.50
High
10.00
About BHC
Bausch Health Companies Inc. is a global, diversified pharmaceutical company. The Salix segment includes sales in the U.S. of GI products. The International segment includes sales of Bausch + Lomb products and Solta Medical aesthetic medical devices, outside the U.S. and Puerto Rico of branded pharmaceutical products, branded generic pharmaceutical products and OTC products. The Solta Medical segment includes global sales of Solta Medical aesthetic medical devices. The Diversified segment includes sales in the U.S. of pharmaceutical products in the areas of neurology and certain other therapeutic classes, dermatology products, generic pharmaceutical products and dentistry products. The Bausch + Lomb segment includes global sales of Bausch + Lomb Vision Care, Surgical and Pharmaceuticals products. Its drug candidate, Larsucosterol binds to and inhibits the activity of DNA methyltransferases, epigenetic enzymes that are elevated and associated with hypermethylation found in AH patients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
