Valeant Pharmaceuticals International Inc. said Monday it was launching a private offering of $750 million worth of notes due 2025, paying 5.500%. The drug maker plans to use the proceeds from the debt offering to repay a portion of term loan facilities due 2022. In comparison, 7-year Treasury notes yielded 2.27% on Friday. Valeant’s long-term credit rating is B3 at Moody’s, which is in junk territory. Valeant said last week that it was on track to pay down more than $5 billion in debt ahead of its previous February 2018 goal. Valeant’s stock slipped 0.5% in premarket trade. It has gained 5.9% year to date through Friday, while the SPDR S&P Pharmaceuticals ETF has tacked on 5.7% and the S&P 500 has climbed 15%.
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