Valeant Pharmaceuticals in Merger with Biovail
June 21, 2010
Cleary Gottlieb is representing Goldman Sachs as financial advisor to Valeant Pharmaceuticals International in connection with its merger with Biovail Corporation. Under the terms of the merger agreement, Valeant stockholders will receive a one-time special cash dividend of $16.77 per share immediately prior to closing of the merger and 1.7809 shares of Biovail common stock upon closing of the merger in exchange for each share of Valeant common stock they own. To finance the transaction, the companies have secured a commitment of $2.8 billion through a term loan facility provided by Goldman Sachs Bank, Morgan Stanley, and Jefferies. The deal, announced on June 21, is expected to close before the end of the year following receipt of stockholder and regulatory approvals.
Valeant is a multinational specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of neurology and dermatology. Biovail is a specialty pharmaceutical company engaged in the formulation, clinical testing, registration, manufacture, and commercialization of pharmaceutical products. The combined company will be called Valeant Pharmaceuticals International.